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The Complete Mid-term Report of the Transformation Agenda


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(MAY 2011 – MAY 2013)

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  • 2. 2LIST OF ACRONYMSAFCON - African Cup of NationsAFN - Armed Forces of NigeriaAG - Associated GasAGRA - Alliance for Green Revolution in AfricaAIS - Aeronautical Information ServiceAMCON - Asset Management Company of NigeriaAPA - Action Push AgendaAPC - Amoured Personnel CarriersASI - All Share IndexASYCUDA - Automated SYstem for CUstoms DataATA - Agricultural Transformation AgendaATOs - Aviation Training OrganizationsAU - African UnionAUMTCO - Abuja Urban Mass Transport Companyb/d - barrels per dayBASAs - Bilateral Air Services AgreementsBDC - Bureaux de ChangeBDS - Business Development ServicesBoA - Bank of AgricBoI - Bank of IndustryBPC - Business Plan CompetitionBPE - Bureau for Public EnterprisesBPP - Bureau of Public ProcurementBUDFOW - Business Development Fund for WomenCAC - Corporate Affairs CommissionCACS - Commercial Agriculture Credit SchemeCAPAM - Commonwealth Association of Public Administration and ManagementCBN - Central Bank of NigeriaCCTV - Close Circuit TelevisionCDM - Clean Development MechanismCEDAW - Convention on the Elimination of Discrimination Against WomenCEOs - Chief Executive OfficersCERS - Coalition Emergency Response SubsystemsCHEWs - Community Health Extension WorkersCMAM - Community Management of Acute MalnutritionCME/HMF - Coordinating Minister for the Economy/Honourable Minister of FinanceCoD - Community of DemocraciesCOPE - Care of PeopleCORS - Continuously Operating Reference StationCPI - Consumer Price IndexCRR - Cash Reserve RatioCSOs - Civil Society OrganisationsCSS - Community Service Scheme
  • 3. 3CSWYE - Community Service, Women & Youths Employment SchemeD8 - Developing Eight countriesDAD - Development Assistance DatabaseDFIs - Development Finance InstitutionsDIA - Defence Intelligence AgencyDICON - Defence Industries CorporationDIsCos - Distribution CompaniesDPT - Against Diphteria, Pertusis and TetanusDSS - Department of State ServiceE&P - Exploration & ProductionECA - Excess Crude AccountECCDE - Early Childhood Care Development and EducationECCE - Early Childhood Care & EducationECOWAS - Economic Community of West African StatesEDC - Entrepreneurship Development CentresEDLs - Estate Development LoansEFCC - Economic and Financial Crimes CommissionELPS - Escravos Lagos Pipeline SystemEM - Emerging MarketsEMIT - Economic Management Implementation TeamEMP - Energy Master PlanePaRs - electronic Passenger Registration SystemEU - European UnionFAAC - Federation Account Allocation CommitteeFAAN - Federal Airport AuthorityFCCU - Fluid Catalytic Cracking unitFCs - Finance CompaniesFCT - Federal Capital TerritoryFCTA - Federal Capital Territory AdministrationFDI - Foreign Direct InvestmentFEC - Federal Executive CouncilFEPs - Front-End PartnersFERMA - Federal Roads Maintenance AgencyFEWS - Flood Early Warning SystemsFGN - Federal Government of NigeriaFHA - Federal Housing AuthorityFMBN - Federal Mortgage Bank of NigeriaFMF - Federal Ministry of FinanceFMH - Federal Ministry of HealthFMLHUD - Federal Ministry of Lands, Housing & Urban DevelopmentFMW - Federal Ministry of WorksFMWR - Federal Ministry of Water ResourcesFoI - Freedom of InformationFoIA - Freedom of Information Act
  • 4. 4FRSC - Federal Road Safety CommissionFX - Foreign ExchangeGBI-EM - Emerging Markets Government Bond IndexGDP - Gross Domestic ProductGenCos - Generation CompaniesGES - Growth Enhancement SchemeGIFMIS - Governments Integrated Financial Management and InformationSystemGIS - Graduate Internship SchemeGMP - Gas Master PlanHA - hectaresHYPREP - Hydrocarbon Pollution Restoration ProjectICAO - International Civil Aviation OrganisationICC - International Criminal CourtICRC - Infrastructure Concession Regulatory CommissionICT - Information and Communication TechnologyIDPs - International Development PartnersIEDs - Improvised Explosive DevicesIFC - International Finance CorporationIITA - Institute of Tropical AgricultureIMF - International Monetary FundINEC - Independent National Electoral CommissionIPPAs - Investment Promotions and Protection AgreementsIPPIS - Integrated Payroll and Personnel Information SystemISO - International Organization for StandardizationIWTM - Inland Waterways Transport Master planJPB - Joint Planning BoardJSCE - Junior Secondary School Certificate ExaminationKBE - Knowledge-Based Economykm2 - Square KilometersKPIs - Key Performance IndicatorsLGAs - Local Government AuthoritiesLPG - Liquefied Petroleum GasLR - Liquidity RatioLTE - Long Term EvolutionM1 - Narrow MoneyM2 - Broad MoneyM3- Cubic MetersMb/d - million barrels per dayMCH - Maternal and Child Health programmeMDAs - Ministries, Departments and AgenciesMDGs - Millennium Development GoalsMFA - Ministry of Foreign AffairsMFBs - Microfinance Banks
  • 5. 5MRF - Mortgage Re-financing FacilityMINILS - Michael Imoudu National institute of Labour StudiesMMIA - Murtala Mohammed International AirportMoU - Memorandum of understandingMPC - Monetary Policy CommitteeMPR - Monetary Policy RateMRC - Mortgage Refinancing CompanyMROs - Maintenance Repair OrganizationsMSMEs - Micro, Small and Medium EnterprisesMSS - Midwives Service SchemeMT - Mega TonnesMW - MegawattsMYTO - Multi-Year Tariff OrderNAF - Nigerian Armed ForcesNAG - Non-associated GasNAICOM - Nigerian Insurance CommissionNAOC - Nigerian Agip Oil CompanyNAPEC - National Action Plan on Employment CreationNAPIMS - National Petroleum Investment Management ServicesNBET - Nigerian Bulk Electricity TradingNBS - National Bureau of StatisticsNCDP - National Council on Development PlanningNCS - Nigerian customs ServiceNDCDF - Niger Delta Collaborative Development FrameworkNDE - National Directorate of EmploymentNEC - National Economic CouncilNECO - National Examination CouncilNEDEP - National Enterprise Development ProgrammeNELMCO - National Electricity Liability Management CompanyNEMT - National Economic Management TeamNERC - Nigerian Electricity Regulatory CommissionNEXIM - Nigerian Export-Import BankNFIS - National Financial Inclusion Strategy (NFIS)NGC - Nigeria Gas CompanyNGMP - Nigeria Gas Master PlanNGOs - Non Governmental OrganizationsNGSA - Nigerian Geological Survey AgencyNHA - National HospitalNHF - National Housing FundNIA - National Intelligence AgencyNIDB - National Identity Data-BaseNigComSat - Nigerian communication SatelliteNIIMP - National Integrated Infrastructure Master PlanNIMASA - Nigerian Maritime Administration and Safety Agency
  • 6. 6NIMC - National identity Management CommissionNIMET - Nigerian Metrological AgencyNIMG - Nigerian Institute of Mining GeosciencesNIMS - National Identity Management SystemNIN - National Identification NumberNIOMCO - Nigerian Iron Ore Mining CompanyNIP - National Implementation PlanNIPPs - National Integrated Power ProjectsNIRP - National Irritation Rehabilitation ProjectNIRSAL - Risk Sharing Scheme for Agricultural LendingNIS - Nigerian Immigration ServiceNNPC - Nigerian National Petroleum CorporationNOA - National Orientation AgencyNOP - Net foreign exchange Open PositionNPC - National Planning CommissionNPF - Nigerian Police ForceNPLs - Non-Performing LoansNRIC - National Research & Innovation CouncilNRIF - National Research & Innovation FundNSC - National Sports CommissionNSCDC - Nigeria Security and Civil Defence CorpsNSE - Nigerian Stock ExchangeNSHDP - National Strategic Health Development PlanNSI - National System of InnovationNSITF - Nigeria Social Trust FundNSMS - Nigeria Sugar Master PlanNTMP - National Transport Master PlanNUBAN - Nigeria Uniform Bank Account NumberNURTW - National Union of Road Transport WorkersNV20: 2020 - Nigeria Vision 20: 2020NYSC - National youth service CorpsOAGF - Office of Accountant General of the FederationOAU - Obafemi Awolowo UniversityODAs - Official Development AssistanceOFIs - other financial institutionsOHCSF - Office of the Head of the Civil Service of the FederationOMO - Open Market OperationsOPEC - Organization of Petroleum Exporting CountriesOPVs - Offshore Patrol VesselsPAIF - Power and Aviation Intervention FundPARP - Troubled Asset Relief ProgramPHCN - Power Holding Company of NigeriaPIB - Petroleum Industry BillPKD - Public Key Directory
  • 7. 7PMBs - Primary Mortgage BanksPMS - Performance Management SystemPoS - Points of SalesPPAs - Project Preparatory AdvancePPP - Public Private PartnershipPRESSID - Presidential Special Scholarships for Innovation and DevelopmentPS - Permanent SecretariesPTA - Payment Terminal AggregatorPTCLR - Presidential Technical Committee on Land ReformPTDF - Petroleum Technology Development FundPTDF - Petroleum Training Development FundPW/WYE - Public Works/Women and Youth EmploymentPWDs - Persons With DisabilitiesR&D - Research and DevelopmentRMP - Rail Master PlanRRF - Restructuring/Refinancing FundRTCs - Road Traffic CrashesS&P - Standard and PoorsSAP - School Access ProgrammeSCIP - South Chad Irrigation ProjectSERVICOM - Service Compact with all NigeriansSGDP - States’ Gross Domestic ProductSHESTCO - Sheda Science & Technology ComplexSLTR - Systematic Land Titling and RegistrationSME - Small and Medium EnterpriseSMEDAN - Small and Medium Enterprise Development Agency of NigeriaSOLA - Solution for Open Land AdministrationSOML - Saving One Million Lives InitiativeSPDC - Shell Petroleum Development CompanySSA - Sub-Sahara AfricanSSCE - Senior Secondary School Certificate ExaminationST&I - Science, Technology & InnovationSURE-P - Subsidy Reinvestment ProgrammeSWF - Sovereign Wealth FundTA - Transformation AgendaTCF - Trillion Cubic FeetTCN - Transmission Company of NigeriaTETFund - Tertiary Trust FundTEU - Twenty-foot Equivalent UnitsTIAP - Tertiary Institution Access ProgrammeTIBs - Temporary Immersion Bioreactor systemTNGP - Trans-Nigerian Gas PipelineTRACON - Terminal Radar Approach ControlTSA - Treasury Single Account
  • 8. 8TSGP - Trans-Sahara Gas PipelineTVET - Technical and Vocational Education and TrainingTWGs - Technical Working GroupsUAE - United Arab EmirateUAV - Unmanned Aerial VehicleUBE - Universal Basic EducationUBEC - Universal Basic Education CommissionUK - United KingdomUN - United NationsUNESCO - United Nations Educational, Scientific and Cultural OrganisationUNFPA - United Nations Population FundUniBen - University of BeninUS - United StatesUSA - United States of AmericaUSD - United States DollarWAEC - West African Examination CouncilWEMCO - Western Metal Product CompanyWGI - Worldwide Governance IndicatorsWHO - World Health OrganizationWOFEE - Women Fund for Economic EmpowermentWTM - World Travel MarketYEAP - Youth Employment in Agriculture ProgrammeYouWin - Youth Enterprise with Innovation in NigeriaYoY - Year-on-Year
  • 9. 9List of Tables and BoxesTable A1: Macroeconomic Indicators 2011 to 2013.Table A2: GovernanceTable A3: Sustainable Economic Growth through the Productive SectorTable A4: Provision of quality and Affordable InfrastructureTable A5: Effective Human Capital and Social DevelopmentTable A8: State GovernmentsTable A7: The LegislatureTable A9: The Private Sector and International Development AgenciesTable 7.1: Macroeconomic Assumptions for 2011-2015Table 8.1: GDP Growth in Selected CountriesTable 8.2: Volume of Exports of Goods and Services in Selected Countries (percent change)Table 8.3: Volume of Imports of Goods and Services (percent change)Table 8.4: Net Private Financial Flows (Billions US$)Table 8.5: Prices of Selected Crude Oil ProductsTable 8.6: Global Inflation TrendsTable 8.7: Unemployment Trends, 2007 – 2013 (percent)Table 8.8: Sectoral Composition of GDP Growth: Baseline, Targets and Actual Performance,2009-2012Table 8.9: Federally Collected Revenue Trend 2009-2012Table 8.10: Performance of the Federal Government’s Budgetary Retained Revenue andExpenditure Vs TA Targets, 2010 - 2012Table 8.11: Major MPC Decisions, 2011-2012Table 8.12 Performance of External SectorTable 8.13: Macroeconomic Indicators, 2009 - 2013Table 9.1: Fiscal Consolidation with growthTable 9.3: Nigeria’s Sovereign Credit RatingTable 9.4: External Validation of Macroeconomic AchievementsTable 9.6: Developments in the Insurance Sector 2010 - 2012Table 9.7: Reforms of the Nigeria’s DFIsTable 9.8: Major Achievements in the Power SectorTable 9.9: Cleaning up the Petroleum Subsidy RegimeTable 9.10: Nigeria’s Port ReformsTable 9.11: Health Sector Action Push AgendaTable 11.1: Priority Programmes, Targets and AchievementsTable 11.2: Projects and Achievements in the Water Sector during 2011-2012.Table 11.3: Key targets and Achievements in Culture, Tourism and National OrientationTable 11.4: Key targets and achievements of the sectorTable 11.4: Key targets and achievements of the sectorTable 12.1: Other Targets of the Road Sector 2012Table 13.1: Key Performance Indicators of the Health SectorTable 16.1: Structure of Gross Investment at Current Market Prices (N b), 2012 – 2015Table 17.1: Outlook of the Key Macroeconomic Variables up to 2015BOXESBox 8.1: YouWIN Program Phase 1Box 8.2: Community Service, Women & Youths Employment (CSWYE) Scheme of SURE-P
  • 10. 10List of FiguresFigure 7.1: Pillars of the Transformation AgendaFigure 7.2: Development Priorities of the Transformation AgendaFigure 8.1: Growth in Selected Regions of the WorldFigure 8.2: Real GDP Growth Rate: Target, Actual and Performance Gap, 2011-2012Figure 8.3: Output Growth by Selected Economies, 2011-2012Figure 8.4: Composition of the Overall Real GDP Growth RateFigure 8.5: Composition of GDP by expenditure components at 1990 Purchasers’ Values, 2011-2012Figure 8.6: Gross Investment and FGN Capital Budget: Actual Versus Target, 2011-2012Figure 8.7: Summary of Jobs created through the YouWIN programmeFigure 8.8: Structure of Government Revenue in 2012Figure 8.9: Inflation RateFigure 8.10: Trends in Financial System IndicatorsFigure 8.11: All Share index and market CapitalizationFigure 8.12: External Reserves (US$ Billion)Figure 9.1: Sources and use of AMCON FundsFigure 13.1: Monthly onset of WPV1 with targeted SIAs (2006 – 2012)
  • 11. 11Table of ContentI. LIST OF ACRONYMSII. LIST OF TABLES/BOXESIII. LIST OF FIGURESIV. FOREWORDV. EXECUTIVE SUMMARYPART ONE: NIGERIAN GOVERNANCE REPORT - ADVANCING DEMOCRACYCHAPTER ONE: GOVERNANCE AND DEMOCRATIZATION1.1 Good Governance and the Challenge of Transformation:1.2 Good Governance and Nigeria1.3 Building Institutions & Consolidating Democracy1.4 Focus of the Jonathan Administration – The Transformation AgendaCHAPTER TWO: BREATHING LIFE INTO NIGERIA’S HUMAN RIGHTS COMMITMENTS2.1 Away from the Shadows of Military Legacies2.2 The Right to Free and Fair Election and Promotion of a Democratic Society2.3 Freedom of the Press and Expression2.4 Ensuring Effective Remedies for Human Rights ViolationCHAPTER THREE: PROMOTING THE INDEPENDENCE AND EFFECTIVENESS OF THE LEGISLATURE3.1 Institutional Independence of the Legislature/Executive3.2 Non-interference in the selection of presiding officers of the NASS3.3 Cooperation in over sight of executive project3.4 Collaboration in fiscal responsibility through the MTEF3.5 Effective Co – Management of the Appropriation ProcessCHAPTER FOUR: CORRUPTION - SLAYING THE DRAGON WITH THE RULE OF LAW4.1 Corruption and Developing Challenges4.2 Right of Fair Hearing in Corruption Cases:4.3 Review of Past Transparency Reports
  • 12. 12CHAPTER FIVE: INSECURITY - PROTECTING THE STATE AGAINST TERRORISM AND INSURGENCY5.1 A New Approach to Fighting Insecurity5.2 Insecurity as a Challenge of Democracy5.3 Current State of Insecurity5.4 Protecting the state against terrorism and insurgencyCHAPTER SIX: INDEPENDENT JUDICIARY AND THE INTEGRITY OF ADMINISTRATION OF JUSTICE6.1: Protecting the Independence of the Judiciary6:2: National Judicial Council (NJC) – Liaison between Judiciary and the GovernmentPART TWO: ECONOMIC AND SOCIAL PERFORMANCECHAPTER SEVEN: INTRODUCTION7.1 Background7.2 Transformation Agenda and the Nigeria Vision 20: 20207.3 Key Deliverables of the Transformation Agenda7.4 Methodology7.4.1 Approach7.4.2 Scope7.4.3 Sources of Data7.5 Organization/Structure of Part Two of the ReportCHAPTER EIGHT: MACROECONOMIC PERFORMANCE8.1 Global Developments8.2 Domestic Developments8.2.1 Job Creation8.3 Fiscal developments8.4 Monetary Sector Developments8.5 Financial Sector Developments8.6 Capital Market Developments8.7 External Sector Developments8.8 Summary of Key Macroeconomic AchievementsCHAPTER NINE: KEY REFORMS AND OUTCOMES9.1 Overview of the Reforms9.2 Financial Sector9.3 Fiscal
  • 13. 139.4 Power Sector9.5 Petroleum Sector9.6 Ports9.7 Aviation9.8 Public Sector9.9 Data Generating Process9.10 Agriculture9.11 Education9.12 Health9.13 Economic Coordination9.14 Infrastructure Development9.15 Foreign PolicyCHAPTER TEN: GOOD GOVERNANCE10.1 High Performance Government10.1.1 High Performance Culture10.2 National Identity Management System (NIMS)10.3 Subsidy Re-investment and Empowerment Programme (SURE-P)10.4 Accountability for Performance10.5 The Public Service10.5.1 Integrated Government10.5.2 Right People (Competent and Committed Public Service)10.6 Foreign Relations and Economic Diplomacy10.6.1 ECOWAS10.6.2 African Union10.6.3 United Nations and Other BodiesCHAPTER ELEVEN: SUSTAINING ECONOMIC GROWTH THROUGH THE PRODUCTIVE SECTOR11.1 Oil and Gas11.2 Agriculture11.3 Trade and Commerce11.4 Manufacturing11.5 Solid Minerals and Metals11.6 Water Resources11.7 Culture, Tourism and Entertainment11.8 Science, Technology and InnovationCHAPTER TWELVE: PROVISION OF QUALITY AND AFFORDABLE INFRASTRUCTURE12.1 Power12.2 Transportation12.2.1 Railways12.2.2 Sea and Inland Waterways12.2.3 Roads
  • 14. 1412.2.4 Aviation12.3 Housing and Urban Development12.4 Information and Communications TechnologyCHAPTER THIRTEEN: EFFECTIVE HUMAN CAPITAL & SOCIAL DEVELOPMENT13.0 Developments in Education and Health Sectors13.1 Education13.1.1 Access to Affordable Quality Education13.1.2 Standards & Quality Assurance13.2 Health13.2.1 Access to Primary Healthcare13.2.2 Improving Tertiary Healthcare13.3 Progress on Human Capital Related MDGs13.3.1 MDGs Intervention in Education13.3.2 MDGs Intervention in Health13.4 Eradicating Poverty13.4.1 Job Creation13.4.2 Access to Micro Credit13.4.3 Affordable Quality Homes13.5 Women and Social Development13.6 Youth Development13.7 Sports Development13.8 Environment13.9 Labour and Productivity13.10 Regional Development13.10.1 Federal Capital Territory13.10.2 Niger Delta RegionCHAPTER FOURTEEN: ENSURING SECURITY AND SAFETY FOR ALL NIGERIANS14.1 Safe and Secure Community14.1.1 Safe and Secure Nation (Internal Perspective)14.1.2 Safe and Secure Nation (External Perspective)CHAPTER FIFTEEN: STATE GOVERNMENTS15.1 Relationship with State GovernmentsCHAPTER SIXTEEN: THE PRIVATE SECTOR AND INTERNATIONAL DEVELOPMENT PARTNERS16.1 Role of Private Sector in the Transformation Agenda16.1.1 Binding constraints on the Private Sector16.1.2 Government’s support to the private Sector16.1.3 Outcomes of Government’s support
  • 15. 1516.2 Role of International Development Partners in the Transformation AgendaCHAPTER SEVENTEEN: OUTLOOK AND PROSPECTS OF THE NATIONCHAPTER EIGHTEEN: CONCLUSION
  • 16. 16FOREWORDDemocracy is as much a result as it is a process and today’s event invites us to reflect on both theprocesses and results of our thriving democracy. There is evidence of stronger democratic institutions.There is even stronger evidence of an evolving culture of better consultation, better stakeholder inputand better mass buy-in on all major issues of national development.It is within this context that I have incorporated a Mid-Term Performance Review Report of myadministration, to enable Nigerians see the progress made so far in implementing the policies,programmes and projects encapsulated in my administration’s Transformation Agenda (2011 – 2015).The economy has recorded an impressive GDP growth and we surpassed our annual targets in 8 out ofthe 14 broad areas of the Transformation Agenda. Consequently, Nigeria’ global ranking by GDP hasimproved from the 44th position in 2010, to the 36th.The celebration of Democracy Day, a day dedicated to reflections on the meaning, gains andsustainability of democracy, should be used to think about how to sustain our collective resolve to facethe future together as one people, guided by the principles of consultation, mutual respect and equity.That is the only way to gird our loins for the distance ahead, because democracy is more a journeyacross wide terrains than arrival at some secluded waterhole.The time has come for us to see democracy beyond the mere form and focus on the substance, which isthat democracy is a way of life that combines good governance with economic efficiency. Today wecan proudly speak of such achievements as the reduction of the overall fiscal deficit-to-GDP ratio to2.41%, the growth of our fiscal reserves (ECA/SWF) to US$9.5 billion, and our external reserves toUS$48.8 billion; as at the first quarter of 2013. These are in addition to the financial sector reformsand the external validation of our macroeconomic achievements by the key international ratingagencies.May 29 is not a day set aside merely to commemorate the swearing in of a government that emergedthrough elections, after nearly two decades of military rule. More significantly, it is a day for stocktaking and for the renewal of vows to deliver good governance to Nigerians. The achievements inphysical infrastructure, exemplified by the current electricity generation capacity of 4,500MW, which isexpected to rise to 9,000MW by the first quarter of 2014, are key service delivery indices. The Reportalso sets out clear targets and performance indicators which are being tracked regularly through theMinisterial Performance Scorecards. The Report presents very detailed and credible facts and figuresshowing the performance of the Administration at this half-way mark.As a people, our goal in deepening our collective democratic experience is to build a community ofequals, wherein everyone has responsibility for the wellbeing of all. Our life together imposes on us all,the responsibility for being protectors and guarantors of our joint patrimony. The leader must protectthe democratic space, allow the people to exercise the duty of making free and informed choices andthen protect and safeguard those choices, in order to build a lasting, democratic community.Our commitment and our resolve are to ensure that the practice of democracy goes beyond the claimto free choice, to include the overarching roles of credible persons and institutions that do not managethe political space as predators. Only such people and institutions can guarantee the political space forall.
  • 17. 17
  • 18. 18Executive Summary1.0 BackgroundIn its effort to address the challenges of growth and development in Nigeria, especially theinfrastructure shortages, high rates of unemployment and poverty, widening disparity inincome and rising recurrent expenditure, the Administration at the outset, in May, 2011,developed the Transformation Agenda (TA) (2011 – 2015). The TA demonstrates our desire andcapacity, to transform our thinking institutional organization and human capital to supportthe aspirations of the Nigerian people, through is a blueprint on key policies, programmes andprojects to be implemented during 2011 – 2015.The TA is not a standalone, strategic plan, as it builds on the foundations of the 1st NationalImplementation Plan (NIP) of the Nigeria Vision 20:2020 (NV20:2020). The (NV20:2020) is anexpression of Nigeria’s intent to improve the living standards of her citizens and place thecountry among the top 20 economies in the world, with a minimum GDP of $900 billion and aper capita income of not less than $4000 per annum. Other objectives are to achieve fiscalprudence, fiscal balance, low inflation and availability of infrastructural facilities to propelthe economy.This Mid-Term Review provides a comprehensive appraisal of the first two years of thisAdministration. It provides factual information about the performance of all sectors of theeconomy, while highlighting the collaboration between the Federal and State Governments aswell as the cordial relationship between the executive and other arms of government. Thisreport is therefore a window through which Government activities are showcased, to elicitcommitment of all concerned to the cause of the Nigerian State.2.0 MethodologyThe approach adopted for producing this report was highly participatory. In particular, aMinisterial Committee under the coordination of the Honourable Minister/Deputy Chairman,National Planning Commission was constituted by Mr. President to lead the process. TheCommittee made extensive consultations and used several background documents, as well asthe submissions of the Ministries in drafting the Report. Technical Working Groups (TWGs) anda drafting team produced the Report which an editorial committee fine-tuned. It evaluatedthe targets set vis-à-vis the achievements within the period, identified the challenges thathindered performance and also explored the outlook and prospects for the country.The report is organized in two parts. The first part focuses on Governance and Democracy,and consists of six Chapters namely Accountable Governance; Breathing Life into Nigeria’sHuman Rights Commitment; Executive-Legislature Relationships; Corruption; Insecurity andIndependent Judiciary. The second part deals with Economic and Social Performance, and isstructured into twelve Chapters covering the Introduction; Macroeconomic Performance; KeyReforms of the Administration and Outcomes; Good Governance; Sustaining Economic Growth
  • 19. 19through the Productive Sector; Quality and Affordable Infrastructure, Effective Human Capitaland Social Development and Ensuring Security and Safety of all Nigerians. Others are theState Governments; Private Sector and International Development Partners; Outlook andProspects of the Nation and Conclusion.3.0 Expanding Civic SpaceThe political space in the last two years has been expanded to enhance democracy andcivic participation. Civic consciousness which is a lubricant of democracy has flourished.This has given rise to unprecedented number of civil society groups in Nigeria. Thesegroups are not only active in advocating for civil rights, but sometimes constitutethemselves into political opposition. Notable of such groups are the save Nigeria Groupand the Occupy Nigeria Group both of which launched strong protest against theGovernment during the fuel Subsidy Removal strike in early 2012.Furthermore, government has conceded to the demands of the people in mostunprecedented manner. Not only that, it has reversed some decisions based on thecomplaints and suggestions of the people. Government has also implemented somepolicies and programmes based on public opinions. Similarly, trade disputes are now,more than ever before, resolved through dialogue. Pro-poor and Gender issues now takecentre stage. The Government is gender sensitive and provides equal opportunities forboth men and women. There are currently about 48 female Ministers and Advisers playingcritical roles in the government.4.0 Key Highlights of Macroeconomic PerformanceThe global economic environment has been quite challenging and uncertain during the periodunder review, with a dip in GDP growth from 5.2 in 2010 to 3.2 percent in 2012. It is alsoprojected at 3.3 percent for 2013. Global trade was equally affected with the growthdeclining from 12 percent in 2010 to 2.5 percent in 2012; but projected to increase marginallyto 3.6 percent in 2013. There was a significant drop in global financial flows, moderated bythe downside risks in the emerging economies. As the global economic conditions improved,the price of crude oil gradually picked up, reach US$113.68 per barrel in 2012. Unemploymentsoared in most advanced economies, to an average of 8 percent accompanied by moderateinflation, perhaps due to low purchasing power.At the domestic level, the impact of the global economic crisis was not as severe, given thatthe country implemented a number of reform measures and other policy interventions. RealGDP growth, largely driven by non-oil activities, averaged 7.01 percent in 2011 – 2012. TheGDP growth rate stood at 6.56 percent at the end of the first quarter 2013. Eight out of thefourteen broad sectors surpassed their growth targets. The nominal GDP grew from $166.53billion in 2009 to $243.99 billion and $257.42 billion in 2011 and 2012 respectively. Thecountry earned an improved global GDP ranking from 44thposition in 2010 to 36thin 2012.
  • 20. 20Similarly, fiscal variables performed GDP well, as a result of the fiscal consolidation stance ofthe Administration. The budget deficit to GDP ratio was reduced from 3.25 percent in 2010 to2.81 percent in 2012. Fiscal buffers (ECA/SWF) have improved tremendously from $2.0 billionin 2010 to $9.5 billion in February 2013.Developments in the monetary and financial sector have remained stable. Active andpredictable exchange rate policy was implemented. The monetary policy operating targetalso shifted to the inter-bank rate, with the monetary policy rate (MPR) as the indicativerate. This has led to a decline in Headline Inflation (year-on-year), which was 12.4 percent atMay 2011 to 8.6 percent in March, 2013. Also, the stability of the banking sector during theperiod shows improvement in the assets quality of the banks, as the average capital adequacyratio of the banks rose from 4.03 percent at end-December 2010 to 18.3 percent at end-December 2012, higher than the global threshold of 10.0 percent.The Nigerian capital market witnessed modest growth and development during the reviewperiod. The total market capitalization increased significantly by N3.86 trillion or 35.29percent to N14.40 trillion, at end-December 2012 and further to N16.41 trillion, at end-march2013. The market capitalization of equities traded on the floor of the Exchange jumped toN8.98 trillion by end-December 2012 and further to N10.73 trillion at end-March 2013. On theother hand, the All-Share Index of listed securities rose from 20,773.98 at the end of 2011 to28,078.81 at end-December 2012, indicating a 35.47 percent increase.The external sector performed relatively well during the review period, despite the globalmelt down. The foreign reserves increased from US$32.64 billion in 2011 to $43.83 billion in2012 and 48.88 billion in March 2013. FDI increased significantly in 2011 by 46.07 percent toUS$8.91 billion from US$6.10 billion in 2010, indicating that sound economic fundamentalsand a positive overall investment climate are attracting foreign investment. Internationalhome remittances increased from US$19.20 billion in 2009 to US$20.61 billion in 2011 andUS$21.89 billion in 2012.Despite the robust GDP growth unemployment still remains a challenge. Unemployment ratein the country increased from 21.1 percent in 2010 to 23.9 percent and 27.4 percent in 2011and 2012 respectively. The increase in unemployment can be largely attributed tophenomenal growth in the number of the active population.5.0 Key Reforms and OutcomesThe Government undertook a number of laudable reforms in different sectors of theeconomy. These include re-introduction of specialized banking model, establishment of theSovereign Wealth Fund (SWF), strengthening of Integrated Payroll and Personnel InformationSystem (IPPIS), the Treasury Single Account (TSA) among others.
  • 21. 21The Power Sector Reform generated a lot of interest among local and foreign investors. Thepetroleum subsidy system was also reformed to halt its drain on the economy. To facilitateforeign trade, the Government strengthened the ports and customs. The Administration hasjoined a small, elite group of countries that have implemented a systematic performancemanagement system in the public service. The Government introduced performancecontracting/agreement in Nigeria as a public service management tool, for measuringministerial and individual performance against negotiated, performance targets. The 2012performance contract agreement between the President and Honorable Ministers of theFederal Republic has led to regular ministerial performance reporting at the FederalExecutive Council.A 30-year National Integrated Infrastructure Master Plan (NIIMP) currently being developed isintended to provide a comprehensive infrastructural master plan to fill the existing gaps.Government has also introduced a reform-based initiative to reduce financial burden ofservicing Nigerian Missions abroad known as the SMART MISSIONS.6.0 Good GovernanceThrough the initiatives and strategies contained in the TA, the administration hasimplemented key economic policies aimed at improving governance for better servicedelivery and support private sector-led growth. One key governance issue being addressedinvolves streamlining the activities of the MDAs with a view to reducing the financial burdenand enable government operate more efficiently and effectively. To this effect, a Committeeon Rationalization of Federal Government Parastatals and Agencies was set up and hascompleted its assignment the recommendations are being considered for repositioning thepublic service for better performance and greater service delivery.In 2012, a platform was designed to promote a national conversation between the people thepeople and the government on the dividends of their democracy. The platform featured allthe serving Ministers who presented their plans and scorecards to the Nigerian people throughthe media. Government also recognizes the relevance of efficient identity management tonational growth and development. In this regard, NIMS was introduced and comprises a chip-based, secure National identity card that will provide a means for irrefutable proof of theidentity of Nigerians. Government had already commenced the deployment of the NIMSinfrastructure in a Pilot Scheme and Issuance of the National Identification Number (NIN) hascommenced since February 2012.The Freedom of Information Act (FoI) was assented by Mr. President in 2011 to allow citizensaccess to government activities and encourages transparency in MDAs particularly regardingbudget and statistical data. The Independent National Electoral Commission (INEC) is nowtruly independent as demonstrated in the gubernatorial elections in Edo, Ondo and Bayelsastates during 2011 and 2012. The country is a major global player with active participationand representation in ECOWAS, AU and the UN, with a robust presence in these and otherworld bodies.
  • 22. 227.0 Sustaining Economic Growth through the Productive SectorThe productive sector is a major growth driver of any economy. The sector produces goodsand services, generates employment, promotes linkages and enhances value addition alongthe value chain of production. It is one of the sectors that link Nigeria with the globaleconomic community through import-export activities.The oil and gas sub-sector continues to be a major driver of the economy, accounting for over95 percent of export earnings and about 85 percent of government revenues, during 2011 -2012. The Government is committed to promoting PPP in the oil and gas sector through thejoint venture operations of NNPC and the oil majors. The Petroleum Industry Bill (PIB) is acomprehensive piece of legislation that was prepared and submitted to the NationalAssembly. The PIB has the potential to bring about the total transformation of the Nigerianoil and gas industry.The agricultural sector has continued its dominance in the economy with its contribution tothe GDP averaging 40 percent during 2011-2012. It currently employs about two thirds of theentire labour force and has sustained its position as the highest contributor to non- oil grossdomestic product, contributing 47.17 and 45.49 percent, in 2011 and 2012 respectively. Theimplementation of the Agricultural Transformation Agenda, introduced by this Administration,has accelerated performance in the sector through the value chain development initiatives.The trade and commerce sector experienced improvement in the global competitivenessranking by 12 points to 115/144 countries in 2012 as well as reduction in the transit time ofgoods within the ECOWAS sub-region, through the implementation of the Sea Link CoastalFerry Services Project, among others. The manufacturing sector contributed 4.18 percent onaverage to GDP in 2011 and 2012 and also attained an average growth rate of 7.60 percentduring the period. The Government has continued to demonstrate its commitment to privatesector initiatives, exemplified by the recent commissioning of the $2.2 billion Western MetalProduct Company (WEMPCO) Limited Complex at Ibafo, Ogun State in 2013. The country alsoattained the position of an exporter of cement instead of a net importer due to the massiveinvestment in the sector, especially by the Dangote Group. As a result, more than two millionjobs have been created in the sector.The solid mineral sector’s contribution to GDP averaged 0.37 percent during 2011 – 2012. It isa rapidly growing sector, with a double digit growth rate averaging 11 percent during thesame period.The water sector recently witnessed a resurgence of activities. In this regard, severalabandoned dam projects are being reactivated for the supply of bulk water to treatmentplants, generation of hydro electricity, provision of water for irrigation farming and fisheriesto boost food security.The culture, tourism and entertainment sector has made considerable progress especially inthe areas of entertainment – films and music. In order to boost the performance of the sector
  • 23. 23the Government provided a N3 billion grant for the development of the entertainmentindustry.The Government recognizes the importance of the knowledge-based skills required in theScience, Technology & Innovation (ST&I) sector and has designed strategies to strengthen theinnovative capacity of the nation’s scientists, engineers and technologists. Achievements inthis sector include a 13 percent increase in the capacity for the design and fabrication ofmachines and equipment, among others.8.0 Provision of Quality and Affordable InfrastructureQuality infrastructure enhances productivity and competitiveness. Nigeria’s lack ofcompetitiveness and low indices of human development can be largely attributed toinadequate and in uncoordinated infrastructural development. The country’s challenges in thedelivery of critical infrastructure continue to impact negatively on investment and capitalinflow into the country. To address this, this Administration has invested massively in rail,road and water infrastructure, include via the SURE-P.Over the last two decades, investment in power sector has not translated to significantimprovement in electricity generation, with generation ranging between 3,500 and 4,500megawatts. In order to achieve the country’s targets for the power sector, a projectedinvestment size of N2.55 trillion is required during 2011 to 2015. A few giant strides weremade in the power sector. These are: stability in electricity generation and distribution, withgeneration increasing from 3,514MW in 2011 to 4,500MW as at December, 2012. Governmenthas signed crucial electricity market making transactions across the entire value chain of thepower sector thereby boosting investors’ confidence in the sector. There was a sustainedimplementation of Roadmap on power leading to the privatization of the generation anddistribution aspects of the power sector. In particular, Payment of the 25 percent bid pricefor the Generation and Distribution companies have been made by the preferred bidders andthe various power companies transfer to their new owners. Equally, Management Contract forthe management of the Transmission Company of Nigeria (TCN) was granted to a privatesector operator in September, 2012.The pace of growth in the transportation sector improved slightly from 6.71 percent in 2010to 6.79 percent in 2012. In terms of contribution to GDP growth, transportation accountedfor 2.67 percent and 2.66 percent in 2010 and 2012 respectively. This is largely attributed tothe poor state of transport infrastructure. The Government has therefore articulated a 25-year strategic vision for the rail sector, embarked on five flagship national road networkprojects and developed an Inland Waterways Transport Master plan (IWTM) for the country.The Government is currently remodelling four strategic international airports in Abuja, Kano,Lagos and Port Harcourt, as well as developing a perishable cargo operational framework.Nigeria currently has a housing deficit of 23 million. This would require an annual supply of aminimum of 2.6 million homes to bridge the gap. In achieving this target, the Government has
  • 24. 24established the Mortgage Re-financing Facility (MRF) to Public Private Partnership (PPP)investment in housing delivery.The Administration established the Ministry of Communications Technology in 2011 inrecognition of the transformative power of ICT in national, socio-economic development. TheGovernment is encouraging the development of a local ICT industry, to deliver on thepromises of the Transformation Agenda. To achieve this mandate, the government hasestablished a Presidential Committee on Broadband Strategy, to bring the several broadbandinitiatives into a single national entity. In addition, the NigComSat-1R was launched inDecember 2011.9.0 Effective Human Capital and Social DevelopmentHuman capital development, particularly education and health, remain very critical to theachievement of the Transformation Agenda. The Government developed a 4-Year EducationDevelopment Plan 2011-2015, to address the challenges in that sector. In the same vein,other sectors have developed their national strategic plans to accelerate the achievement ofthe government’s objectives. In education access to affordable and quality education is beingaddressed through a number of programmes including Early Childhood Care Development andEducation (ECCDE); Almajiri Education Programme; National Campaign on Access; Girls’Education Programme and the establishment of 12 New Federal Universities.Similarly, several initiatives are being implemented in the health sector to support theTransformation Agenda and National Strategic Health Development Plan (NSHDP)’s goals. Oneof such initiatives is a vision to save one million lives by 2015, which was articulated. Thisrepresents a major paradigm shift in the approach to service delivery in the health sector.Nigeria equally made significant progress in the achievement of the human capital-relatedMDGs in the last 2 years. Remarkable increase has been achieved in the area of net enrolmentratio and net attendance ratio in primary education, up from 62.1 percent in 2008 to 70.1percent in 2012. Appreciable progress was made in the reduction of under-five mortality (per1,000 live births) from 157 in 2008 to 141 in 2011. Nigeria has surpassed the target in thereduction of the maternal mortality rate (per 100,000 live births) which dropped from 545 in2008 to 487 in 2011. In the area of poverty reduction, progress has been made throughconditional cash transfers to 39,567 households, employment of 2,260 new village heathworkers, building and renovation of 742 classroom blocks, and procurement of 1,214,271textbooks, amongst others in 2011.A significant achievement has also been made in the area of women development. Inparticular, there was an increase in women’s representation in governance and attainment of33 percent affirmative action in federal appointments at the executive level. With theappointment of 13 female Ministers out of 42, representing 31 percent and 4 Special Advisersout of 18, representing 23 percent. Mr. President has set a good example and is siqualling hiscommitment to women’s empowerment and gender sensitive policies. The environment
  • 25. 25sector has witnessed improvements in the areas of the development of a National GreenHouse Gas Inventory System and purchase of green gas measurement equipment. Other arethe establishment of a 1500km Great Green Wall initiative to check desertification in thefrontline States; the establishment of procedures for the Clean Development Mechanism(CDM) and the generation of 20 CDM projects in 2012, among others. In the area of labour andproductivity, the Government established relations with 10 international agencies globally forcollaboration on labour and industrial relation matters. To measure the impact of theGovernments own procurement on job creation, all MDAs have been mandated to indicate inall FEC contracts the local employment content. In addition, 96 of the 213 trade disputesduring the period have been resolved. A number of new programmes, specifically targetingthe youths evolved in this period, some of which are the YouWin programme and GraduateInternship programme.In the Niger Delta region there has been a visible improvement in the provision ofinfrastructure in the form of roads, housing, potable water supply, electrification, etc. TheConstruction and rehabilitation of roads are currently in progress in the region, to enhancethe movement of people, goods and services.The sports sector however experienced mixed fortunes in global competitions. While Nigeriahad a poor performance in the 2012 Olympics in London, it won the Africa Cup of Nations heldin South Africa in 2013. The Falconets made it to the semi-finals of the Women U-20 WorldCup in Japan.10.0 Ensuring Security and Safety of Lives for all NigeriansThe approach to management of security is multi-sectoral in nature as it involves severalsecurity and intelligence agencies. The key goals of these agencies are to prevent crime andprotect lives and properties, uphold and enforce the law, control traffic and prevent externalaggression, among others. The key achievements in the area of maintaining Safe and SecureCommunity include: establishment of a Maritime Police Command; increase in the number ofpolice stations across the country; establishment of an Anti-Terrorism Unit in the NigeriaPolice; procurement of three helicopters, 275 toyota hilux pickups and 33 Amoured PersonnelCarriers (APC) for the Police in the first quarter 2013 and Installation and deployment of over2,000 video surveillance camera system (CCTV) in Abuja and Lagos with 36 equipment roomsand two main switch centers in 2012.Nigeria’s external contribution to world peace and security especially in Africa has beenremarkable. In this regard, the Armed Forces of Nigeria (AFN) are participating in nine UnitedNations on-going peace keeping operations, within and outside Africa. Currently, about 5000officers and men of the AFN as well as Military hardware are deployed in peace keepingmissions.
  • 26. 2611.0 Executive-Legislature RelationshipThe Administration acknowledges the legislature as a critical partner in achieving the nation’sdevelopment objectives. Since the inception of this Administration, the executive hasmaintained a cordial relationship with both chambers of the National Assembly. Also, theleadership of both chambers has enjoyed stability which has engendered continuity andenhanced performance.12.0 State GovernmentsThe current Administration has improved and maintained a cooperative, synergized andharmonious relationship with the other tiers of government since inception. It has equallyencouraged the States to formulate and implement policies and programmes in line with itsTransformation Agenda. The cordial relationship between the Federal and State Governmentshas resulted in tremendous achievements during the period under review. The mostprominent of these are: the reinvigoration of the NIPPs and the cooperative implementationof the Administration Power Sector Roadmap, the establishment of the Sovereign Wealth Fundto replace the Excess Crude Account (ECA) and several other joint initiatives that have beenpursued through formal avenues, such as the constitutionally established National Council ofState and National Economic Council, as well as informal avenues engendered by the fact thatboth Mr. President and Vice President were former Governors of States.13.0 The Private Sector and International Development PartnersPrivate actors and international development agencies are important partners to achieve thesocio-economic goals of any country. The prominence the current Administration accordedthe private sector in the realization of the TA and the NV 20:2020 derives from the belief thatthe sector has high potential in delivering on those programmes and projects. For instance,out of the total expected investment of N25.7 trillion over the life of the TA, the privatesector’s contribution is projected at N11.1 trillion or 43.1 percent for 2012-2015. Tostrengthen the private sector, the Government is opening up the mortgage sector,particularly mortgage financing. The Infrastructure Concession Regulatory Commission (ICRC)has been strengthened for effective implementation of PPP framework. Due to poorcoordination, activities of international partners resulted in multiplicity of interventions inthe sectors during the period under review.The Official Development Assistance (ODAs) flows into the country increased during thereview period. Aggregate disbursement of development assistance to Nigeria by theInternational Development Partner (IDPs) in 2011 and 2012 stood at USD2.76 billion or 0.004percent of GDP. The interventions were, however, not properly aligned with the provisions ofthe development plans. Also, partners’ commitments to programmes were not in tandem withnational development aspirations. The current administration will therefore, furtherstrengthen the development assistance coordination process and sustain the implementationof Development Assistance Database (DAD) framework. Government will also encourage
  • 27. 27partners to align their assistance programme frameworks with Nigeria’s medium and long-term development agenda.14.0 Outlook and prospects of the NationThe Nation’s economic outlook and prospects in the medium term remain very bright andpositive, despite continued uncertainty and a sluggish global economic recovery. Deepenedreforms in various sectors of the economy, strong domestic demand, increased domestic andforeign private investment, continued fiscal consolidation, and innovative sectoral andactivity-specific government interventions and reforms are expected to support economicgrowth and prosperity in the next two years and beyond. Overall, the trend in most importantmacroeconomic variables demonstrates that the economy is on the right path.15.0 SUMMARY OF KEY ACHIEVEMENTS OF THE ADMINISTRATIONThe Mid-Term Review has enumerated a number of activities highlighting the performance ofthis Administration across all sectors of the economy. Overall, the Administration hasachieved much on national development in the last two years. Though some challenges stillremain, the Government is committed to improving the pace of growth and development ofthe nation. For emphasis, it is important to highlight the major achievements of thisAdministration which are grouped into governance & democracy, macroeconomic and sectoralareas.15.1 Governance and Democracy achievementsThe political space in the last two years has been expanded to enhance democracy andcivic participation. Civic consciousness which is a lubricant of democracy has flourished.This has given rise to unprecedented number of civil society groups in Nigeria. Thesegroups are not only active in advocating for civil rights, but sometimes constitutethemselves into political opposition. Furthermore, government has conceded to thedemands of the people in most unprecedented manner and also implemented somepolicies and programmes based on public opinions.Similarly, trade disputes are now, more than ever before, resolved through dialogue. Pro-poor and Gender issues now take centre stage. The Government is gender sensitive andprovides equal opportunities for both men and women. There are currently about 48female Ministers and Advisers playing critical roles in the government.15.2 Macroeconomic achievementsThe economy recorded a robust GDP growth of 7.43 percent in 2011 and 6.58 percent in 2012.On the average, the annual growth targets were surpassed in eight out of the 14 broad sectorshighlighted in the Transformation Agenda. With this development, the country’s globalranking by GDP improved from 44th position in 2010 to 39th and 36th positions in 2011 and
  • 28. 282012 respectively. The validation of the country’s macroeconomic performance byinternational credit rating agencies at a time many other emerging economies were beingdowngraded, is a pointer to the Government’s ability to achieve its set goals and objectives.Table A1 highlights the key macroeconomic achievements, during 2011 to 2013.Table A1: Macroeconomic Indicators 2011 to 2013.S/N INDICATOR BASELINE TARGET OUTCOME2009 2010 2011 2012 2013 2011 2012 2013i. iGlobal Rankingby Nominal GDP45 44 - - - 39 36 36ii. iiNominal GDP(US$’ Billion)167 226 242 274 292 243 257 284iii. iiiPer Capita GDP(US$)1,079 1,420 1,480 1,627 1,688 1,483 1,526 1,638iv. ivGDP GrowthRate ( percent)6.96 7.98 7.36 7.61 7.65 7.43 6.58 6.75v. vBudget Deficit (percent of GDP)3.27 3.25 3.11 2.85 2.95 3.14 2.82 NAvi. viRetainedRevenue (N’Billion)2,479 2,341 3,316 3,561 3,890 3, 141 3, 155 NAvii. Total OilRevenue (N’Trillion)3.19 5.40 NA NA NA 8.85 8.03 NAviii. viiTotal Taxrevenue (N’Billion)2,1982,839 NA NA NA 4,628 5,007 NAix. viiiNon-Oil TaxRevenue (N’Billion)1,258 1,359 NA NA NA 1,558 1,806 NAx. ixECA and SWF(Fiscal Reserves)(US$’ Billion)6.9 2.0 NA NA NA 4.6 9.2 9.85xi. NSE ASI 20,82724,770NA NA NA 20,730 28,078 33,159xii. NSE MarketCapitalization(N’ Billion)4,989 7,914 NA NA NA 6,533 8,974 10,600xiii. xCredit Rating(S&P)B+ B+ NA NA NA B+ BB-StableBB-Stablexiv. xMonetary Policy 7.44 6.08 12.0 12.5 12.13 8.9 12.0 12.0
  • 29. 29iRate ( percent)xv. xiiPrime LendingRate ( percent)18.99 17.59 NA NA NA 16.02 17.02 16.59xvi. xiiiMoney Supply,M2 ( percentannual change)18.11 17.48 28 28 13.93 13.93 15.34xvii. xivMonthly AverageInflation Rate (percent)12.5 13.7 10.8 9.5 9.4 10.8 12.2 9.03xviii. End-PeriodInflation Rate(YoY)( percent)13.9 11.8 NA NA NA 10.3 12.0 8.6*xix. xvCredit toPrivate Sector (percent annualchange)32.58 12.02 NA NA NA 5.13 40.01 6.79xx. xviBanks’ Non-PerformingLoans ( percentof Total Credit)32.8 15.49 NA NA NA 4.95 3.47 NAxxi. xviiCurrent AccountBalance (percent of GDP)8.3 5.86 3.65 3.65 7.36 7.74 NAxxii. xviiiNon-Oil Exports( percent annualchange)21.34 30.5 31.0 29.55 29.57 NAxxiii. xixAverageExchange Rate(N/$)148.88150.4 153.9 155.0 159.5 153.86 157.5 157.3xxiv. xxiExternalReserves (US$’Billion)42.38 32.34 NA NA NA 32.64 44.18 48.57xxv. xxiiNumber ofMonths ofImportsEquivalent16.34 7.92 NA NA NA 6.45 8.85 NASources: NBS, IMF, FMF, CBN, NPC
  • 30. 3015.3 Sectoral achievementsMany sectors of the economy witnessed structural reforms during the period under review,which led to 57.14 percent of the sectors achieving their growth targets, as specified in theTransformation Agenda. Tables A2 – A9 highlight the key sectoral achievements.Table A2: GovernanceProgrammes KEY ACHIEVEMENTS Public ServiceReforms Sustenance of implementation of Tenure system in the public servicefor Permanent Secretaries and Directors Introduction of the Performance Management System to objectivelyassess the performance of MDAs. Restructuring and rationalization of MDAs, saving the governmentsubstantial resources Introduction of e-governance system to enhance financial discipline andstability in the implementation of fiscal and monetary policies. PublicProcurement Strengthening of the Bureau for Public Procurement has resulted in asavings of N400 billion in 2012 through its operationsCitizen-centricGovernment Ministerial platform designed to promote national conversationbetween Nigerians and the government. National Good Governance Tour to monitor major projects completedor ongoing of the administration. Increase in the level of citizens’ awareness of government policies andprogrammes to 62 percent in 2011. Increase in the percentage change in attitude of citizen informed onnational goals and aspiration to 56 percent in 2011.Accountability forPerformance Signing of Performance Agreements by Ministers, PermanentSecretaries, CEOs of Parastatals and Directors to facilitateaccountability, efficiency and establish a result based government. Freedom of Information Act passed and providing citizens with moreinformation on government activities. The EFCC has improved on the number of intelligence reports andhandling of corruption cases with US$6,670.3 million recovered in 2011and 67 convictions SERVICOM Units being reactivated service-wideFree and FairElectoral Process Strengthening of the Independent National Electoral Commission,leading to the April 2011 general elections being adjudged by bothdomestic and international observers as the freest, fairest and mostcredible elections in Nigeria’s recent electoral history. Conduct of credible, free and fair elections in several States of thefederation in 2011 and 2012 such as Edo, Adamawa, Ekiti, Osun, andCross RiverFiscal Reforms  IPPIS up scaling to 215 MDAs, ensuring that personnel cost is based on
  • 31. 31actual verified numbers Introduction of the Treasury Single Account (TSA) with an attendantreversal of government cash position from an average overdraft ofN102 billion to a credit of N4.6 billionNational IdentityManagement The National Identification Number (NIN) System and National IdentityCard Issuance System currently being produced for 13 million Nigerians. 30 registration centers nationwide established and currently carryingout enrolment activities and uploading captured demographic andbiometric data into the National Identity Database (NIDB). Effort is on to scale up these centres to 1,500. The National Identification Numbers and tracking ID numbers have beensuccessfully generated and issued to about 300,000 registered personsTable A3: Sustainable Economic Growth through the Productive SectorAgriculture SectorProgrammes AchievementsExportation of 900,000MT of driedcassava chip by 20152.2 million MT was achieved in 2012 which is 1.3 millionMT ahead of the plan target.Production of additional 20 million MTof food by 2015.Within 2012, 8 million MT of additional food was addedto domestic food supply, about 70 percent above thetarget set.Ensuring sustained supply of highquality Cassava FlourOver 1.3 million MT of high quality cassava flour hasbeen provided under the cassava flour policy in 2012.Increasing use of cassava and reducingImportation of wheat 40 percent substitution of cassava for wheat hasbeen achieved through research and collaborationwith the IITA and Federal Institute for IndustrialResearch. Zero duty for all equipment and machinery for theproduction of cassava bread. Furthermore,government established the Cassava BreadDevelopment Fund, to be funded through the tariffon wheat flour. 385 Master Bakers trained across the six geo-political zones in the country. Decline in wheat imports to Nigeria from an all-timehigh of 4,051,000 MT in 2010 to 3,700,000 MT in2012.
  • 32. 32Creation of 3.5 million jobs by 2015 2.2 million jobs already created in 2012/early 2013Provision of fertilizer and otheragriculture inputs Access to 1.5 million farmers with subsidized seedsand fertilizers via mobile phones within 120 days ofdevelopment and deployment of the E-wallet system. Increase in percentage of farmers that accessedsubsidized seeds and fertilizers from 11 percentunder the old system to 70 percent under the E-wallet system. A savings of N25 billion made by theFederal Government in 2012. Growth of the number of seed companies from 11 atthe start of the current administration to 70 Scrapping of contracts for supply of fertilizer andseeds and sale of fertilizer and seeds directly tofarmers by accredited companies, instead ofgovernment.Oil & Gas Key projects in the oil and gas sector  Construction of a 36”x136 km gas pipeline fromOben to Geregu for the supply of gas to GereguPower Plant in 2011 Construction of a 24’x31 km gas pipeline fromItoki to Olorunshogu to supply gas to OlorunshogoPHCN/NIPP Power Plant. Completed andcurrently supplying gas Six (6) University Upgrade projects have beencompleted and handed over to the beneficiaries,while others below 45 percent completion arenow at advanced stages of 60 percent - 95percent completion. Under the Amnesty Programme in the NigerDelta, over 1,368 trainees and scholars havegraduated in various disciplines, within andoutside the Nigeria. About 1,696 are currentlyundergoing training with others numbering 110to commence training Trans-Sahara Gas Pipeline (TSGP): As an offshootof the Trans Nigeria Gas Pipeline, the 5-phaseTSGP currently at the 3rd phase, is expected tobe completed during 2013 – 2016. The overallproject to be completed in 2018, is aimed atfurther transporting gas from Nigeria to Europe
  • 33. 33through Niger and Algeria; Completion of the processing of about of 1,096km2 seismic data. Phase 5 seismic dataacquisition commenced in Dec. 2012, whilescanning and vectorization of 380,471.69 km 2Dseismic section commenced in Oct 2012; crude oil production (including condensate)averaging 2.30 million barrels per day has beenconsistently maintained, in spite of oil bunkeringand pipeline vandalism; Increased indigenous participation in the oil andgas sector, leading to the establishment of theEbok Terminal, with a current daily crude oilproduction of 7,000 b/d and a plateauproduction of 50,000 b/d at full capacity; Reduction in gas flared from 25.3 percent in2011 to about 20 percent in 2012, due to thegovernment’s increased effort in implementationof programmes and projects in the Nigeria GasMaster Plan (NGMP) and Gas Revolution; Nigeria Gas Company (NGC) gas sales andtransmission throughput grew from 722 mmscf/din 2011 to about 800 mmcsf/d in 2012; Completion and commissioning of a 45mmscf/dgas processing facilities by an indigenouscompany. A gas flare penalty of $3.5 per 1000scfapproved to further deter companies from gasflaring; Reduction in the payment of fuel subsidy of overN2 trillion in 2011 to about N1 trillion in 2012through the introduction of certified cargoinspections, insistence on adequatedocumentation, reduction of the number ofparticipants by 67 percent from about 128 in2011 to 38 currently;
  • 34. 34 Revamping of the Fluid Catalytic Cracking unit(FCCU) in Kaduna Refinery after eight years inlimbo, to boost local refining. Currently theKaduna refinery is producing at 60 percent ofinstalled capacity; On-going rehabilitation of the Port Harcourt andWarri refineries to meet at least 70 percent ofthe country’s needs. This will save $3.5billionforeign exchange and enhance tax payment totreasury; Niger Dock fabricated and completed the Abangand Itut oil production platforms, using 100percent Nigerian engineering and fabrication.The total investment in the facilities upgradewas estimated at above $2billion and hasgenerated over 10,000 jobs; Increase in Local Scholarship Schemes run byPetroleum Training Development Fund (PTDF)from 10 to 19 universities, to enable moreparticipation of qualified Nigerians. This is dueto the positive impact generated by the Scheme; Establishment of the Hydrocarbon PollutionRestoration Project (HYPREP) in July 2012, toinvestigate and evaluate all hydrocarbon -polluted communities and sites in Nigeria, aswell as identify oil spill sites and assess theimpact of spillage on the eco system in the NigerDelta region. Documentation of oil spill sites in 9States of the region have been undertaken; HYPREP robust programme has continued torestore the environment for healthy ecosystem,reduce draw-back in agriculture and fish farmingwhich is a major component of Small andMedium Enterprise SME and is impactingpositively on the health of the people; Project Aquila payment efficiency hasencouraged increased investments of N53 billion
  • 35. 35in the downstream sector, resulting inemergence of additional 27 new depots from 44locations in 2010 to 71 depots in 2013, 1,000 newretail outlets and 800 new trucks; and Reduction of daily consumption of premiummotor spirit (PMS) from over 60 million to about40 million litres per day in 2011 and 2012respectively, due to improved documentationprocess under project Aquila. This has also ledto a reduction in the subsidy gap, following theincrease in pump price from 65 to 97 Naira/litre.Manufacturing  Completed the development of a Sugar Master Plan(NSMS) to provide roadmap for 100 percent localproduction of sugar Development of NIRP with the focus on the entirevalue chain of sub-sectors where Nigeria hascomparative and competitive advantage; Attained the position of an exporter of cementinstead of a net importer. With no import permitissued in the whole of 2012 for cement importation,a savings of over N200 billion in foreign exchangewas made. More than two million jobs were alsocreated; Transformation of the Onne Oil and Gas Free Zonewith 6 billion USD invested leading to the attractionof 150 companies into the zone with 30,000 jobscreated to date;Water SectorWater Supply Scheme Completed the Greater Makurdi Water Supply Scheme tosupply 50 litres of water per day to nearly one millionpeople in Makurdi85 percent completion of Galma Dam water supply tosupply 186 million cubic metres for portable water forover 23 twons/villages in six local government areas inKaduna State65 percent completion of Kashimbilla Multipurpose aBuffer Dam Project for water supply and irrigation withtreatment plant capacity of 60,000 m3/day in TarabaStateCompleted the Mangu Water Supply to provide 10million litres of water per day to serve communities of
  • 36. 36Gindiri and Mangu township in Plateau StateCompleted the Northern Ishan Water Supply to supplynine million litres of water per day to servecommunities of Uromi, Ubaiaja, Ugengu, Ugboha andIguben in Edo State35 percent completion of the Central Ogbia RegionalWater Supply to provide potable water and sanitation in16 communities of Ogbia LGA, Uteke and its environs atUteke, Bayelsa StateBoreholes Completed the Drilling of 545 hand pump wells andmotorized boreholes to increase access to water inrural communities to about 2 million people across thenationIrrigation projects 55 percent completion of Bakolori Irrigation to irrigate23,000ha to cover 5,964.77ha of rice and 35 metric tonsof rice, 40 metric tons of maize, 18 metric tons ofcowpea, 1,206 metric tons of sweet potato, 5 metrictons of groundnuts, 800 metric tons of sugar cane and1,575 metric tons of vegetables in Bakolori80 percent completion of the South Chad Irrigationproject to cover 67,000ha of land85 percent completion of Galma Dam (irrigation) Toprovide a reservoir capacity for irrigation of 2,500ha inKaduna StateCompleted the Goronyo Dam emergency spillway repairs(irrigation) 2000 ha irrigation in Sokoto State80 percent completion of the rehabilitation of existinginfrastructure at Jibia Irrigation project to provideopportunity for more farming families to be empoweredeconomically in Katsina StateCompleted seven other major dam projects (withcapacity of 2,269 million cubic meters), includingGurara, Owiwi, Sabke, Owena ans Shagari dams toWater to be used for irrigation, water supply,hydropower, fisheries, etc in Gurara, Owiwi, Sabke,Owena, and ShagariStudies Completed feasibility studies for hydro powerinstallation at sites that show potentials for hydropowergeneration in Oyan, Ikere Gorge, Bakolori, Dadin Kowa,Tiga, Kiri, Jibiya, Challawa Gorge, Owena, Doma, Waya,Mgowo, Zobe, Kampe, Kashimilla, Ogwashiku, Zungeruand Mambilla to generate a total capacity of 3,557 MWof electricity
  • 37. 37Assessment of water releases from the discharge alongBenue and Niger rivers, to establish maximum floodlevels all over the country for decision makingCulture, Tourism and NationalOrientationCompleted the construction and equipment of threenew Cultural Industry Centres, one each in Taraba,Ogun and FCTto be used for cultural activitiesCompleted the rehabilitation of National Theater withbanquet chairs, ICT and computer equipment, soundbooths, etc at Iganmu, LagosTable A4: Provision of quality and Affordable InfrastructureSECTOR KEY ACHIEVEMENTSPower Stability in electricity generation and distribution. Powergeneration increased from 3,514MW in 2011 to 4,500MW as atDecember, 2012. Substantial progress has been made towardsan optimal electricity generation mix. The Power Sector Roadmap is being implemented leading tothe following:- Unbundling of the PHCN into six Generating Companies(GenCos), one Transmission Company and 11 Distributioncompanies (DisCos);- Licensing of 34 IPPs, of which three (AES Barge Limited,Okpai and Afam VI) have commenced operation;- Establishment of the Nigerian Bulk Electricity Trading(NBET) Plc with its Board inaugurated; Sustained implementation of Road map on power leading to theprivatization of the generation and distribution aspects of the powersector. In particular, Payment of the 25 percent bid price for theGeneration and Distribution companies have been made by thepreferred bidders and the various power companies transfer to theirnew owners. There has also been an increase in the average hours of poweravailability in 10 major cities from a low of less than 9 hours in 2011to 13 percent between January and September 2012 with a peak of15.2 hours in August 2012.
  • 38. 38 Construction of 10MW wind energy generation companies in KatsinaState to add to the nations’ energy mix. Review of the electricity Multi-Year Tariff Order (MYTO) with a viewto making the electricity tariff cost reflective to attract privatesector investment Establishment of a N30 billion Power and Aviation Intervention Fund(PAIF) by the CBN to provide concessionary long term credit topower and aviation projects. Granting Management Contract for the management of theTransmission Company of Nigeria (TCN) to a private provider in2012. Transportation Rail Road Sea and InlandWaterways Aviation Rehabilitation of the main western line: Lagos-Kano, 1,124kmcompleted and functional, while the eastern line, Port-Harcourt-Maiduguri is expected to be completed before the end of 2013 A total of 651km of roads was paved with bitumine in 2012icncluding, Apapa-Oshodi Expressway; Benin-Ore-Shagamu highway;Abuja-Abaji-lokoja dualisation; Kano-Maiduguri dualization; Onitsha-Owerri Expressway; Vom-Manchok road (Plateau State) Movement of 1,200 tonnes of cargo from Lokoja to Onitsha by inlandwaterways Developing aerotropolis classified investment opportunities intoseven (7) business clusters within the aerotropolis model. This isaimed at creating 500,000 direct and indirect job opportunities. Remodelling of four strategic international airports in Abuja, Kano,Lagos and Port Harcourt. Installation and upgrade of infrastructure at various airports toensure the safety of goods, security of passengers and enhance nightoperations; Installation of several automated devices and equipment, such asTerminal Radar Approach Control (TRACON) and the AeronauticalInformation Service (AIS). Provision of total Very High Frequency Radio Coverage; ControlTower Modernization; World Geodetic Survey-84; and othernavigational aids; ICT enhancement and mobile control tower. Science, technologyand innovation(ST&I) Launched the NigComSat-1R satellite to compliment the fibreconnectivity and provide more internet bandwidth. Deployed PCs to 766 secondary schools through the School AccessProgramme (SAP) Locally produced tablet developed, similar to the iPad Signed an MOU with Nokia Corporation to establish a lab in Nigeriato support the domestic mobile software industry.Housing and Urban  Completion of the construction of 204 and 256 prototype
  • 39. 39Development housing units in 2011 and 2012 respectively, in different partsof the country; Provision of 1,250 and 504 housing units in 2011 and 2012respectively through Public Private Partnership (PPP); Provision of a total number of 1,405 and 3,529 mortgagesthrough the Federal Mortgage Bank of Nigeria (FMBN) in 2011and 2012 respectively.Table A5: Effective Human Capital and Social DevelopmentPROGRAMME AchievementMDGs  Nigeria has made significant progress in the achievement of the humancapital-related MDGs in the last 2 years. Remarkable increase achievedin the area of net enrolment ratio and net attendance ratio in primaryeducation, up from 62.1 percent in 2008 to 70.1 percent in 2012. Appreciable progress made in the reduction of under-five mortality(per 1,000 live births) from 157 in 2008 to 141 in 2011. Equally, thepercentage of children under five with fever who are anti malarialdrug increased from 32 percent in 2008 to 54 percent in 2002.EducationAccess toAffordableEducation Institutionalization of Early Childhood Care Development andEducation to reduce the number of out-of school children and takeadvantage of other important aspects of early childhood education Construction of 124 Almajiri schools which are in the final stagesof hand over to State Governments to address the high number ofOut-of School children especially the Almajirais in the northernpart of Nigeria Construction of special girls schools in 13 states of the Federationhas begun to improve Girls’ Education Programme Lunching of the National Campaign on Access to Basic Educationacross the geo-political zones to reduce number of out-of schoolchildren especially the low participation of boys in education inthe South East Establishment of 12 new universities to enhance access to aFederal University in all the statesInterventions  Establishment of Special Education Intervention Fund of which N36billion has been disbursed to the States in 2012 through the
  • 40. 40Universal Basic Education (UBE) programme Establishment of the Tertiary Trust Fund (TETFund) for theprovision of infrastructure and related facilities, of which N76.7billion has been disbursed to tertiary institutions N24 billion disbursed to 12 tertiary institutions from the HighImpact Fund to enhance development of 12 high institutions toCentres of Excellence Refurbishment and equipment of 51 Federal and StatePolytechnics with modern laboratories to encourage participationin technical and vocational education and training Refurbishing 352 science and technical laboratories in the 104Federal Unity Colleges, in addition to providing 62 ICT centres and40 sets of mathematical kits Distribution of Instructional and Library Materialsa) A total of 19.67 million instructional materials in four coresubjects of english language, mathematics, basic science andtechnology, and social studies have been distributed to primary 1& 2 pupilsb) In addition to 4.144 assorted Junior Secondary library materialswere provided to schools across the country Awarded a total of 101 Presidential Special Scholarships forInnovation and Development (PRESSID) to beneficiaries fortraining in top 25 Universities of the worldHealth Sector:Access to PrimaryHealth Over 433,650 lives have been saved in 2011 and 2012 throughSaving One Million Lives (SOML) Initiative Midwives Service Scheme (MSS) and SURE-P Maternal and ChildHealth (MCH) programmea) A total of 9,243 frontline health workers have been recruited,trained and deployed to most underserved communities in Nigeriato increase antenatal attendant coverage,b) 1,500 primary healthcare facilities have been refurbished andsupplied with the essential commodities to increase deliveryskilled-birth attendant, andc) In 2012 alone, 1.044 million antenatal care visits were made inthe 1,000 MSS facilities across the 36 states and FCT, which is a 26percent increase from 828,922 reported in 2011 to increase post-natal care coveraged) over 141,929 deliveries were carried out by skilled-birthattendants
  • 41. 41e) over 145,990 women attended family planning clinics in 2012 Improving Tertiary Healthcare to bring the country’s tertiaryhealthcare facilities to international standardsa) Upgrading of tertiary health facilities infrastructure (involvingthe rehabilitation and equipment of Federal Tertiary Hospitals)b) modernisation of two additional hospitals (OAU and UniBenTeaching hospitals) completed and awaiting commissioningc) modernization of Nnamdi Azikiwe University and University ofCalabar Teaching Hospitals at advanced stage of completiond) upgrading and accreditation of the four Regional BiomedicalMaintenance Training Centres have commencede) the new trauma centres at the University of AbujaTeaching Hospital, Gwagwalada and the National Hospital (NHA),Abuja are nearing completionEradicatingPovertyJob Creation  Created through YouWin businesses created by the 3,600 youthswith brilliant business ideas over the next three years Success recorded in 2011-2012 Conditional Grant Scheme in Statesand LGAs include:a) the construction, renovation and equipping of 3,389 healthfacilities,b) construction of 8,985 water facilities’c) a conditional cash transfer to 39,567 householdsd) payment of 2,260 new village health workers,e) building and renovation of 1,714 classroom blocks, andf) procurement of 2,804,644 textbooksHousing  Funded the building of more than 61,193 housing units through theFederal Mortgaged Bank-Administered National Housing Fund (NHF)Scheme in six geopolitical zones to provide affordable and qualityhomes
  • 42. 42 Increased total number of housing units by 1,407 in 2011 from7,743 in 2010 through Public Private PartnershipGender Equity andWomenEmpowerment 33 percent of appointments at the Federal Executive level by thePresident Goodluck Ebele Jonathan Administration are women, inline with the Affirmative action in Federal Appointments at theExecutive level Construction and Equipment of Skills AcquisitionCentres Across the country. A total of 9,210 women were trained between 2012 in various skills Over 3,339 women groups/cooperatives have received a total sumof N271,500.00 as at December 2012 from which 3,281 jobs werecreated. 500 Persons With Disabilities were assisted and a total of 115Visually Impaired Persons benefited from skills acquisitionprogramme through the Nigerian Farm Craft Centre for the BlindSports Development  Nigeria won 13 medals at the 2012 Paralympic: six gold, five silverand one bronze Nigeria won the 2013 African Cup of Nations held in South Africa Golden Eaglets won silver for the 2013 African U-17 Championshipin Algeria Nigeria won a gold and a silver medal at the2012 World ChessOlympiad in Turkey Nigeria emerged 3rdat the 2012 Senior African WrestlingChampionship held in MoroccoRegionalDevelopmentFederal CapitalTerritoryInfrastructuraldevelopment The completion of the roads between Kubwa/Airport and the cityhave reduced the travel time to the city to 30mins and the rate ofaccidents by more than half Provided access roads and other infrastructure to 5,824commercial and residential plots in Jahi, Wuye, Kagini, Maitamaextension and Katampe Districts of the Federal Capital City Constructed access roads to about 2,300 plots for development ofbuilding structures in Kubwa, Bwari and Karshi satellite townsNiger Delta
  • 43. 43Training  Sent a total of 704 youths for training, abroad and locally, invarious fields of endeavour, including agriculture, petroleumengineering, commerce, tourism, and maritime studies 701 non-militant youths have been trained locally and overseas asfollows:i. 314 in Oil and Gas,ii. 270 in Maritime,iii. 90 in Agriculture.Construction ofSkill AcquisitionCentres Nine skills centres are being built, one in each of the nine states ofthe Niger Delta; three of them will be completed this yearConstruction andrehabilitation ofroads To enhance the movement of people, goods and services Work in progress (about 50 percent completion) on East-West Road 11 other roads have achieved more than 22 percent completion.Construction ofHousing Construction of a total of 360 housing units has reached 55 percentcompletion across the 9 Niger Delta States to provide affordablehouses to the inhabitants of the regionPermanentemployment andindustrialattachment Contacted eleven (11) major companies in the Oil and Gas to placethe trained youths either on permanent employment or onindustrial attachment basis. Contacted the Nigerian Maritime Administration and Safety Agency(NIMASA) to place all the youths trained in Maritime Studies onindustrial attachment on board sea-going vesselsWater andElectrification Effort has been made to provide 37 communities with potablewater and electricity supply.EnvironmentalManagement andProtection Project Land reclamation and erosion control works are in progress atdifferent level of completion in seven locations.Industrial Parkproject Signed MOU with OST of Turkey to facilitate the establishment ofindustrial parks in each State of the region. Each park is tocomprise 5,000 SMEs to manufacture and produce goods andservices in over 100 sectors of the economy. The industrial parkswill employ thousands of Niger Delta youthsStudies:  100 percent completion of study on Remediation, Rehabilitationand Restoration of 33 Oil Impacted sites in Niger Delta 26 percent completion of study on Remediation, Rehabilitation andRestoration of the Oil Impacted sites at Stubbs Creek, Eket, Akwa-Ibom State
  • 44. 44Table A6: Ensuring Security, Safety and Secure Lives for all NigeriansProgramme KEY ACHIEVEMENTS Safe and SecureCommunity Building modern and well equipped security agencies 2,000 security operatives to be trained on anti-terrorism 2,000 video surveillance camera systems (CCTV) installed anddeployed in Abuja and Lagos Safe and Secure Nation(Internal Perspective) Decrease in recidivism by convicts and reduction in prisoncongestion Improved response time to emergencies by the Federal FireService Average time taken to process E-passport down from 48 to 36hours Safe and Secure Nation(External Perspective) 1,592 AFN Personnel in UN mission in Liberia while 186personnel are in Guinea Bissau on an ECOWAS mission Establishment of multi-national joint task force to apprehendcross boarder bandits and insurgents and to check the influx ofillegal arms Stationed a level two hospital in Darfur, Sudan in support ofthe missionKEY ACHIEVEMENTS: LEGISLATURETable A7: The LegislatureProgramme AchievementsRelationships  There has been a smooth and cordial working relationshipbetween the Executive and Legislative arms. Timely and speedy passage of bills and Appropriation Acts intolaw by the National Assembly.Performance ofNational Assembly A total of 310 bills were presented for consideration at theSenate with 26 passed, 2 rejected, 9 withdrawn and 273 atdifferent stages of reading. The House of Representatives considered a total of 435 Bills with47 passed, 15 rejected, 5 withdrawn/stepped down and 368 atdifferent stages of consideration.
  • 45. 45Table A8: State GovernmentsPROGRAMME/PROJECT AchievementCooperation Between theFederal and StatesGovernmentsFiscal Policy CoordinationTaxation To end multiple taxation in Nigeria: Efforts to streamline prevailing tax regimes is beingintensified by the Joint Tax Boar Endorsed the National Tax Policy and Tax PayersCertification (TIN)Maintenance of Strongcountercyclical fiscalPolicyTo protect the country from oil price volatility: Partial removal of subsidy Establishment of the Sovereign Wealth Fund to manage thecountry’s excess earning from crude oil. Presently, there isan initial deposit of US$1 billion Accumulation of fiscal reserves in ECA is currently overUS$9 billionInfrastructure Projects To enhance power generation and distribution in the country: The establishment of National Integrated Power Plants(NIPPs) Approved Development of the National IntegratedInfrastructure Master Plan (2014-2043) Commencement and Institutionalization of SURE-PPublic Service To increase the quality of public service: The ongoing Professionalization of the officials of theDepartment of Planning, Research and Statistics at nationaland sub-national levels Training of the officials of the Department of Planning,Research and StatisticsFunding the EducationSector Establishment of the tertiary Education Trust Fund(TETFund) Sustenance of the Universal Basic Education (UBE) SURE-PData Generation at Sub-national Level Establishment of the States’ statistical agencies. Over 20states have passed into law their Statistical Bill and 10 haveestablished Bureau of Statistics Computation of States’ Gross Domestic Product (SGDP)
  • 46. 46Table A9: The Private Sector and International Development AgenciesSECTOR KEY ACHIEVEMENTS Private Sector InternationalDevelopment Partners injected a lifeline of credit totaling N200 billion in 2011to three bridge banks. power and airline intervention funds worth N300 billionwith N181.4 already disbursed negotiated financing agreements totaling US$ 12 billionto support the real sector; strengthened the Infrastructure Concession RegulatoryCommission (ICRC) for effective implementation of thePPP frameworkThe consistency in economic growth performance at the macro and sectoral levels in the last24 months is indicative of the Government’s avowed commitment to the sustainedimplementation of the Transformation Agenda. This therefore assures us of a growth path tothe realization of the objectives of Nigeria Vision20: 2020. Government intends to sustain theon-going reform initiatives in the remaining two years of its Administration.16.0 ConclusionThe Government will intensify effort at building a stronger and stable economy that willpromote enduring growth and prosperity during the remaining two years. The gains alreadyrecorded at the macro and sectoral levels will be improved upon. The Administration willcontinue to place national interest over and above any other interests. The Government willfurther strengthen effort aimed at keeping our borders secure as well as upscale securitymeasures put in place to foster peace and pubic security, necessary ingredients for growthand development. The administration will remain continuously focused, prioritizing andstrategizing in order to make more positive impact on the quality of life of all Nigerians.
  • 47. 47PART ONE: NIGERIAN GOVERNANCE REPORT - ADVANCING DEMOCRACYCHAPTER ONE: GOVERNANCE AND DEMOCRATIZATIONThe governance scorecard is a mid-term report of President Goodluck Ebele Jonathan’s driveto promoting good governance for sustainable economic development in Nigeria. This is donein fulfilment of his covenant with Nigerians at his inauguration as President in May, 2011. Thisis in recognition that the purpose of government is to promote the welfare of the peoplewhich include the promotion of civil and political rights, as well as social and economic rights.The Jonathan administration is the first government in Nigeria to issue a governance reportthat gives the public an opportunity to assess its achievement in relation to democraticgovernance.President Goodluck Jonathan at his inaugural address two years ago declared emphatically hisresolve to advance the rights of the Nigerian citizens, especially with regard to qualityeducation, healthcare and decent jobs. He declared that as someone who comes fromamongst them and someone without shoes while growing up, his experience has prepared himfor the work. He also underscored the importance of genuine commitment to advancing therule of law in providing a framework that enables the Nigerian state to effectively deliverefficient social and economic services to citizens.Nigeria is a fledgling democracy. The journey to democracy started in 1999 with the electionof the first civilian president after a long period of military rule. Military rule everywhere ismarked by a disruption in the building of robust institutions of democratic governance andeconomic development. Primarily, it requires the suspension of democratic rights of thepeople which results in governance that lacks the full rigor of accountability. Restoration ofdemocracy therefore requires the re-institutionalization of the structures of accountabilitythrough the entrenchment of the rule of law.The year 2011 marked the beginning of sustained efforts to rebuild the structure ofgovernance in Nigeria, to achieve and sustain political and economic transformation. Sincethe inception of this Administration in 2011, the Nigerian government has focused attentionon transforming the institutions of state through compliance with the framework of rule oflaw as provided in the constitution and supported by international human rights instruments.The central idea is to ensure sustainable economic development through good governance,advancing the rule of law and reforming institutions.1.1 Good Governance and the Challenge of TransformationThe attention to governance related issues in Nigeria and Africa at large is not a new concept.What is new is the growing consensus around the world and among African leaders, that goodgovernance is an underlying factor for sustained economic growth and development. It is aglobally acknowledged fact that good governance is a pre-requisite for political, economicand social development. It is therefore impossible to separate good governance fromsustained economic growth and development.
  • 48. 48Since Nigeria gained independence, efforts to cater for the welfare of its populace has beenhaphazard due to the weak governance. A cursory look at governance in Nigeria, whethermilitary or democracy, revealed poor attempt at promoting democracy, good governance andstable polity. Studies have also shown an abysmal performance of office holders in their questto provide good governance and better living conditions for the people. Thus, Nigeria hassuffered from impoverishment of large number of peoples, corruption and mismanagement offunds, infrastructural decay, and lack of trust from the governed among others. Many citizenstherefore viewed government in Nigeria as something distant from their interest, andgovernance has become for them an oppressive machine.For the first time in Nigeria’s history, the Jonathan Administration acknowledges that right-based and rule-based governance provides the basis for optimising other factors ofdevelopment such as health, education, infrastructure, democracy, economic growth. It isrealised that good governance is not about the nature or form of government, but about theefficiency and effectiveness of government institutions and relevant agents in promoting andimproving the living standards of those it governs. This is the premise on which the currentadministration’s Transformation Agenda was designed.Majority of Nigerians acknowledge government as legitimate and committed to the extentthat it improves the public welfare and responds to the needs of the citizens, competent inguaranteeing law and order, delivering public services, conducting free and fair elections;able to create an enabling environment for productive activities and equitably distributingNigeria’s vast natural and mineral resources to its populace. Since its inception in 2011,Goodluck’s Administration has been responding to these expectations. It has committed itselfto ensuring that governance is decisively focused on delivering quality social and economicgoods and services to Nigerians.To justify its claim of being a transformative and accountable government, the Administrationis producing this first Governance Report in Nigeria to:i) communicate effectively progress made and challenges encountered since theinauguration of the administration in 2011;ii) build trust between the governed and the government, and to begin the process ofcollaborative partnership in the nation building process; andiii) promote good governance by allowing for accountability, transparency, andparticipation in all government processes.The current Administration believes strongly that nation building is a process that does nothappen overnight, but which is possible for genuine and sustained economic growth anddevelopment to happen for a nation like Nigeria. This is despite the years of decay inNigeria’s development.The chapter discusses below the concept of good governance as conceptualized in thetransformation agenda, gives a brief historical analysis of where we are coming from and the
  • 49. 49deep-rooted development deficiencies which this government sets itself to redress since2011.1.2 Good Governance and NigeriaGood governance has been defined differently by scholars and public policy experts. It is inthis context that the Jonathan administration’s concept of good governance acknowledges theglobal definition of good governance as encompassing:i) Legitimacy: of government elected through free and fair election andacknowledged by the Nigerian citizenry;ii) Efficiency and Effectiveness: efficient and effective exercise of authority in themanagement of a country’s affairs, comprising the complex mechanisms, processesand institutions through which citizens and groups articulate their interests,exercise their legal rights and mediate their differences.iii) Responsive rule of law – this means equality before the law, or the equalsubjection of all classes to the laws of the land which is administered through thecourts.iv) Promoting Welfare of the People– this is the ability of governance to ensure theefficient delivery of goods and services i.e. sound education, quality health care,infrastructural development, improved economic growth, job opportunities,improved business environment etc.v) Accountability and Transparency – appropriate accountability and transparencymechanisms must be put in place either through civil society groups, the media,government policies for the spread of information and government processes, etc.It is about the openness in the flow of information necessary for economic activityand development to take Protecting and Promoting Human Rights –Good governance must promote peoplefocused policies and actions. It should promote freedom to the citizens to expresstheir views and exercise their fundamental human rights that include civil andpolitical rights, rights to employment, right to housing and shelter, right to health,right to water, right to education, right to safe and healthy environment, rights ofwomen, children and young persons.vii) Institutional Reform - A reform mechanism in place to strengthen nationalinstitutions on a regular basis. Institutional reform aims at changing obsolete waysof doing things and engendering modern ideas and processes.viii) National Consensus– Good governance work around an agreed system of nationalconsensus both from the governed and the government.
  • 50. 50Despite the importance of the above mentioned characteristics in the concept of goodgovernance, it must be acknowledged that democratic governance is still at its infancy inNigeria. The institutions that support such governance are still weakened by many years ofmilitary rule, though some progress was achieved from 1999 when democratic governance wasrestored. Similarly, tremendous progress has been made in rebuilding institutions andproviding incentives for role players in the democratic setting has been achieved under thisAdministration.1.3 Building Institutions & Consolidating DemocracyAfter 50 years of independence, the 2011 elections offered a clean break from rancorouselections over the years. It also offered a clear opportunity to begin to invest in building theinstitutions that would guarantee the future of elected government in Nigeria. It articulatedits Transformation Agenda, that outlines the Administration’s vision for achieving this, as partof the most effective legacy the Administration would leave.As with all transitions from authoritarianism, we were aware when we chose this path thatmanaging the new-found freedoms and voices would not be easy. At the inception of theAdministration in May 2011, we were confronted with a situation in which, in all directions,the underlying values of our constitution were in need of a new lease of life.1.4 Focus of the Jonathan Administration – The Transformation AgendaBuilding on these foundations, the focus of the Administration as articulated in theTransformation Agenda to lay the foundations for sustainable governance, economic growthand development. The Agenda aims at addressing:i) Decades of personalised rule that undermined the processes of governance and theintegrity of their operators;ii) The erosion of confidence of the civil service;iii) Weak Parliament that was short on confidence and at best tentative in itsconstitutional role of checking the Executive;iv) Weak Judiciary would require time to recover from long years of executiveintimidation and interference;v) A media that needed to find its voice again as the Fourth Estate;vi) Weak institutions around the country, at federal as well as state levels; andvii) Unsustainable economic growth and development with the state of poorinfrastructure, education and healthcare, limited job opportunities for the population.
  • 51. 51The current administration, despite persistent challenges, and in keeping to its commitmentto the Nigerian people, was able toi) for the first time, the National Assembly operates confidently without fear ofExecutive interference;ii) the National Judicial Council (NJC) is taking bold steps to sanitize the judiciary ofcorruption with the firm support of the President and the Executive arm ofGovernment and relations between the various arms of government are harmoniouslike never before.iii) the Administration was able to strengthen public watchdogs such as the ICPC,EFCC, and the National Human Rights Commission (NHRC), among otherinstitutions;iv) Safety and security remains the primary responsibility of the Administration.Mobilising the security agencies, state government, communities, and the friendsof Nigeria beyond our shores, have turned around the tide of militancy in the NigerDelta; contained the spread of the insurgency in north-eastern Nigeria; andworking hard to give the country credible foundations that will guarantee that weprevail in the ongoing struggle against terrorism in Nigeria;v) the Administration introduced measures to reform the criminal justice, streamlinethe fight against terrorism and ensure monitoring of our borders;vi) In the area of governance and transparency, the Administration followed up theenactment of the freedom of Information Act (FoIA) with the roll out of Guidelinesfor its implementation and across the board training on the Act for all publicofficers in the Federal Civil Service;andvii) In terms of participation and social and gender inclusion, the Administration isable to ensure that women constitute over 30 percent of the positions in theExecutive Council of the Federation, including the Chief Justice of the Federation.
  • 52. 52CHAPTER TWO: BREATHING LIFE INTO NIGERIA’S HUMAN RIGHTS COMMITMENTSSince 2011, this Administration has worked very hard to fulfill its human rights commitments.It has significantly improved the nation’s human rights records even in situations of extremeinsecurity and violence. The Nigerian government has not been validly cited by any credibleinstitution for major violations of human rights since 2011. Any allegation of deliberatehuman rights violation against the Nigerian government since 2011 is easily debunked uponobjective consideration. This is because the government has remained focused on entrenchinga form of governance that is defined by accountability and the rule of law.The record of this government in effectively promoting human rights is a matter of deeply-held principles, and not mere politics. The government realizes that it is only in anenvironment of respect for rights and liberty of the people that it can succeed in promotingpolitical stability and developing the enormous human and natural endowments of thecountry. It also realizes that in view of its increasing role in promoting good governance andhuman rights in African and West Africa sub-region, it has to ensure respect for human rightsat home.The Jonathan administration realizes the importance of abandoning the legacy of half-hearted commitment to human rights by past administrations. It recognizes the urgency ofmoving away from the authoritarian politics of the past into a new future of open andaccountable governance. In the past, especially under military administrations, human rightssuffered huge setbacks. The legislature was disbanded and the power of the judiciary toreview executive actions was restricted. The military ruled by decrees issued by dictatorialmilitary councils. The people lost their right to be democratically governed, and this led tothe loss of other human rights.The period of military rule also marked the rise of non-governmental organizations thatcampaigned for the protection of human rights. Some of these groups suffered repression andpersecution for their work. But since 1999 when Nigeria returned to civil rule, things havestarted to change. The challenge before the present administration is to accelerate thispositive change. In the last two years, the government has advanced the protection of humanrights as part of its agenda of transformation. It has also changed the character of governanceat the Federal level; instead of repression and persecution of leaders of civil society groups,the government is engaging them as partners in governance.The most incontrovertible evidence of this transformation is that in March 2012, PresidentJonathan hosted human rights leaders and other civil society activists to a workshop onconstitutional review at the Banquet Hall of the Presidential Villa. The objective of theworkshop was to solicit the inputs of civil society in the review of the constitution. Thismeeting is historic because in the past, successive governments in Nigeria have rejected theright of civil society groups to participate in constitutional reviews. Under the military, civilsociety leaders and human rights lawyers were arrested and some detained for long periodsbecause they were bold to organize a conference to deliberate on the need to review the
  • 53. 53constitution. Under a democratic rule, the story did not change dramatically, although civilsociety groups were allowed to hold conferences, their views were largely dismissed.Civil society leaders described the workshop as the first time Government has engaged thecivil society on such important issue as the constitution. In their view this is a clear evidenceof this government’s sincere commitment to accountable and participatory governance. In areferendum at the workshop, the leaders endorsed merit and not ethnic or religiousconsiderations as the basis for appointments to federal positions. They also endorsed the rightto citizenship of every Nigerian in any state of the country irrespective of his or her state ofbirth and demanded that economic and social rights be made as enforceable as civil andpolitical rights in the constitution.This event and follow-up activities planned to ensure that civil society groups share ownershipof the constitutional review process define the transformation agenda as it relates topromoting human rights and participatory governance. The flagrant abuse of power of thepast no longer characterize the style of governance. Government sees itself as a custodian ofthe popular mandate and therefore commits to meaningful engagement with all strata of thesociety.This period marked the increasing removal of the legacies of military rule and theinstitutionalization of the norms and principles of democratic citizenship. This administrationhas, in the last two years, fully taken Nigeria from the shadows of the authoritarian legaciesof military rule to an era of real and effective protection of human rightsThe history of human rights in Nigeria is as old as Nigeria. The founding fathers of therepublic easily recognized that promotion of human rights is fundamental to political andsocial stability for a plural society like Nigeria. Even before independence they wereenthusiastic about the need to recognize human rights in the fundamental laws of the countryand to entrench their promotion through state practices. Nigeria recognized and incorporatedin its domestic laws, the rights enshrine in the international human rights bills as far back asin 1958 when a special colonial commission, the Willinks Committee, recommended theinstitutionalization of fundamental human rights in the proposed Independence Constitutionas a panacea for the prevalent injustice and marginalization. In 1960, Nigeria incorporatedthe provisions of the Universal Declaration on Human and People’s Rights (UDHR) and theEuropean Convention on Human Rights in the 1960 Independence Constitution. This includedthe right to life, the right to freedom of the press and freedom of expression; the right tohuman dignity and the right to movement. These critical civil and political rights are retainedby the Second Republic 1979 and 1999 Constitutions. To facilitate the enforcement of theserights, the Fundamental Rights Enforcement Procedure Rules have simplified access to courtto seek remedies for these rights when they are breached by either the government orindividuals.It is important to note the additional recognition of social and economic rights in theconstitution. These rights, including the right to education, health and employment, are
  • 54. 54listed as ‘Fundamental Objective and Directive Principles of State Policy’, although defined asnot easily enforceable, public officials are obligated to ensure that state policies advancethese rights.Nigeria has gone a step further by becoming one of the earliest African countries todomesticate the African Charter on Human and Peoples Rights (ACPHR). The Charter cameinto force on June 27, 1981. Nigeria signed it on August 31, 1982 and ratified it on June 22,1983. The charter is now part of the laws of Nigeria being incorporated as Chapter 10 of the1990 Laws of the Federation of Nigeria. Nigerian courts, including the Supreme Court, havefreely enforced the provisions of the charter. The Supreme Court in a famous ruling decidedthat next to the constitution is the African Charter on Human and Peoples Rights in hierarchyof laws. Beyond the African Charter, Nigeria is a signatory to several international humanrights instruments, especially the Convention on the Elimination of All Forms of Discriminationagainst Women. The signing and domestication of these human rights instruments underscorethe recognition of the importance of these rights to political stability and economicdevelopment2.1 Away from the Shadows of Military LegaciesNigeria has signed and domesticated the relevant international human rights instruments;however, it faces the challenge of breathing life into these rights. The criticism has in thepast being that this commitment is a mere tokenism; that government merely signed up tothis commitment in order to evade accusation of non-compliance with international humanrights obligations. The formal recognition of these rights without goodfaith and meaningfulefforts to ensure their effective realization in social and economic transactions in the societydo not lead to sustainable democracy. Central to the idea of democratic governance is seriousefforts by the Government to entrench the observance of these rights in the implementationof public policy.Government can no longer be accused of merely paying lip service to its obligation toeffectively protect the human rights of its citizens and residents. President Jonathan isgenuinely committed to protecting the rights and freedoms of Nigerian people. He hasconsistently steered Nigeria away from the shadows of military legacies and has put Nigeriafirmly on the higher ground of human rights-based governance. This has been demonstrated ingovernment’s scorecard on some of the most basic civil and political rights.2.2 The Right to Free and Fair Election and Promotion of a Democratic SocietyNigeria is currently practising true democracy, with the political space open to theGovernment and the opposition to make their claims to leadership. Elections are competitiveand citizens have the right to choose their leaders. Opposition politicians are not persecuted.They have the right to express political opinions different from those of the ruling party andorganize peacefully to realize their political objectives. Even in the ruling Peoples’Democratic Party (PDP), there is a healthy debate and competition for authority and power.The media and civil society groups continue to exercise the right to criticize government
  • 55. 55policies and programs without fear of persecution or repression. Nigeria today is an opensociety where citizens exercise democratic rights.President Jonathan set for himself the agenda of giving life to electoral reform which hispredecessor, President Umaru Musa Yar’Adua started before his death in office. He seizedupon this agenda with sincerity and courage. Since 1999, the need for electoral reform hasbeen recognized by the political elite. The incidents of military intervention are linked to thelack of free and fair elections in the previous republics. Controversies over highly riggedelections have been the forerunners of political violence and instability which providedjustification for military intervention.Free and fair election is the bedrock of an effective framework of sustainable and meaningfuldemocracy and the rule of law. it enables the exercise of other civil and political rights. Thesuspension or suppression of the democratic rights of citizens is an effective curtailment tothe enjoyment of other civil and political rights of the people. The quality of elections andthe quality of political freedom enjoyed by opposition politicians and civil society activists isa measure of the quality of human rights protection and democratic governance in thecountry. It is in recognition of this that President set about implementing the report of theindependent electoral reform commission chaired by a revered former Chief Justice ofNigeria, Hon. Justice Mohammed Uwais. The Commission observed that the root cause ofrigged elections in Nigeria is the lack of an electoral commission whose leadership andstructure guarantee its independence. The commission recommended the establishment of atruly independent electoral body with fiscal and managerial independence to conduct generalelections under a new electoral law that guarantees multiparty democracy and protects thedemocratic rights of Nigerian citizens.President Goodluck Jonathan has implemented this recommendation by reconstituting theIndependent National Electoral Commission (INEC) and appointing as its chair, a highlyrespected university professor and human rights activist, Professor Attahiru Jega. In its reviewof the 2011 general elections, the European Union Delegation confirmed that the Chair of theINEC was appointed on “the basis of his reputation and in recognition of the role he played inthe Electoral Reform Committee (ERC) that was established to review the electoral processand the legal framework after the widely rigged and disputed 2007 elections”. 1Apart fromProfessor Jega, two other leading civil society leaders were appointed into the commission toensure its integrity and independence.The Electoral Reform Committee also recommended the review of the constitutionalprovisions on election so that the INEC and electoral bodies in the states can be financiallyindependent to conduct free and fair elections. President Jonathan, in keeping with hiscommitment to pursue wholesale electoral reform, led the process of the review of theelectoral law to provide effective remedies in court for victims of electoral violation. INECwas made financially independent and its commissioners were not required to belong topolitical parties. Reflecting on the review of the electoral law to facilitate free and fair11See Nigeria: Final Report. General Elections April 2011 by the European Union Election Observation Team
  • 56. 56elections, the European Union Election Observation Mission remarked that “Overall, the legalframework for the 2011 General Elections provided an adequate basis for the conduct ofdemocratic elections in accordance with international principles and with the internationalinstruments ratified by the Federal Republic of Nigeria. Following the Electoral ReformCommittee’s (ERC) report of December 2008, which highlighted several shortcomingsaffecting the quality and credibility of elections, such as the necessity to address theprevailing atmosphere of impunity with regard to electoral offences, in June 2010 theNational Assembly and the State Houses of Assembly approved the first amendments to the1999 Constitution. These brought significant improvements, concerning inter alia the financialautonomy of INEC and the introduction of the prerequisite for INEC’s Chairperson andNational Commissioners not to be members of a political party”.In the past, the major hindrance to consolidation of democracy in Nigeria was theimpossibility of the ruling party at the center losing any election, even in states andcommunities where it is evidently unpopular. Scholars of politics and advocates of goodgovernance have often wondered whether Nigeria’s nascent democracy could survive in theprevailing culture of political intolerance. Political activists who wanted to participate inpolitics and transform the character of governance were discouraged by the lack of faith inthe competitiveness of the electoral process. President Jonathan has however, fostered acompetitive electoral system by deliberate refusal to deploy the instruments of federal powerto determine outcomes of elections in Nigeria. This has been evident in the loosing ofelections by the ruling Peoples’ Democratic Party (PDP) in some critical states like Edo,Anambra and Ondo.In furtherance of his commitment to free and fair elections as the bedrock of a democraticstate driven by the rule of law, President Jonathan in 2011 conducted the freest and fairestelections in Nigeria since the 1980s and deservedly got the credit for it. The highly reveredNigerian novelist, Professor Chinua Achebe, who had in the past criticized Nigeriangovernments for their lack of commitment to free and fair elections, in his latest book,“There Was a Country”, acknowledged that although the last general election in Nigeria wasnot perfect, overall, it was an improvement over past travesties that were passed off aselections in Nigeria. He also acknowledged the independence of the electoral commissionunder President Jonathan as the reason why the 2011 general elections were markedlydifferent from previous elections.Critical indicator of the credibility of the 2011 general elections is the drastic reduction inelection petitions. The INEC was allowed to independently conduct the general elections incompliance with electoral laws and due process. This became very obvious when a leadingopposition presidential candidate challenged the election of the President in court, theSupreme Court had little difficulty in validating the election because of the transparency ofthe process.
  • 57. 572.3 Freedom of the Press and ExpressionThe Nigerian print and electronic media operate in an environment of freedom and liberty.Ownership of media organizations is not restricted. Opposition politicians own print andelectronic media that are free to broadcast political messages as long as they keep to therequirements of objectivity and fairness. Since 2011 there have been no cases of repression ofpress freedom in the manner of the past.This atmosphere of press freedom and free expression has encouraged political opposition andenhanced the quality of political debate. Apart from guaranteeing freedom of the press,government has adopted policy frameworks that enhance the ability of the press toobjectively report on government performance. One of the first actions of President Jonathanafter his election in May 2011 was the signing into law of the Freedom of Information Act.This is noteworthy considering the history of attempts by civil society groups to get thisFreedom of Information Bill passed into law since 2000.To ensure effective realization of the objectives of the Freedom of Information law, theoffice of the Attorney General of the Federation as the oversight office for freedom ofinformation law has issued guidelines to Ministries, Departments and Agencies (MDAs) ofgovernment on compliance with the provisions of the Act, particularly the provisions thatrequire that every public office publish critical information in easily accessible andretrievable form and provide access to anyone who requires such information. Theestablishment of a clear policy framework requiring reporting of compliance by all MDAs onFebruary of every fiscal year is a clear demonstration of genuine commitment to freedom ofthe press2.4 Ensuring Effective Remedies for Human Rights ViolationA critical ingredient for ensuring that citizens have access to effective remedies for theviolation of human rights is to ensure the existence of independent institutions with oversightresponsibility on human rights. Nigeria’s commitment to effective enforcement of humanrights is backed up by the existence of an independent national human rights commission. TheNational Human Rights Commission (NHRC) was established in 1995 by an Act of the NationalAssembly. Before 2011, the NHRC had had turbulent times resulting in the removal of itsExecutive Secretary in 2006. The general perception of human rights activists is that theNHRC was formed by the military administration of General Sani Abacha to pay lip-service tohuman rights during the period of international criticism of Nigeria’s human rights record.The National Human Rights Commission has attained the full character of an independentnational human rights commission with the inauguration of an independent board of directorchaired by an international acclaimed human rights scholar and lawyer, Dr. Anselm ChidiOdinkalu. A clear evidence of this independence is the fact that the NHRC is conducting anindependent human rights audit of Baga Town in Borno State where federal troops wereaccused of committing violence against civilian population.
  • 58. 58CHAPTER THREE: PROMOTING THE INDEPENDENCE AND EFFECTIVENESS OF THELEGISLATUREThe 2005 Governance Report of the United Nation Economic Commission for Africa (UNECA)observed that Africa legislatures are very weak and incapacitated in terms of legislating forgood governance and transformation. According to the UNECA, these legislatures are grosslyunderstaffed and without the requisite resources to make good laws and provide oversight ofexecutive projects.The Jonathan government has worked hard in the last two years to ensure that thisdescription of the legislature in Africa does not include the Nigerian legislature. PresidentJonathan’s humility and commitment to due process has provided opportunity for thelegislative process to mature and the National Assembly to grow in independence andeffectiveness to realizing the legislative mandate under the constitution. In two years ofJonathan presidency, the National Assembly has achieved fiscal autonomy, institutionalindependence and greater participation in the management of the national economy.The government’s support for the independence and effectiveness of the legislature is anexpression of its understanding of the importance of building strong institutions, especiallythose institutions that provide framework for political and economic transformation. Thegovernment recognizes that it cannot deliver on its agenda unless it has enhanced theindependence of the legislature to be an effective lawmaker.3.1 Institutional Independence of the Legislature/ExecutiveThe Nigerian Constitution is emphatic on the need for an independent lawmaking institutionwith significant responsibility for policymaking, especially economic policymaking. Sections80-88 of the Constitution lay out robust role for the legislature in assisting the executive inthe management of the national economy. The National Assembly is conceived by the framersof the constitution to be in constant engagement with the executive in the policy formulationand management of national affairs. The framers expect that this will promote and reinforcesmaturity of political institutions. The President has created such an environment therebyengendering the tolerance and power sharing amongst different branches of government andadvanced the rule of law and constitutional democracy.President Jonathan has defined the executive-legislature relationship in Nigeria on its clearpolicy of non-interference in the internal affairs of the legislature. The government attitudeof not interfering with legislative authority is the right approach towards sustaininginstitutional growth and development of our democratic process. This policy has resulted inthe sustained period of peace and harmony between the two branches of government. Since2011 there has been no open conflict between the executive and the legislatives. This is notto say there have not been disagreements between the two institutions, where they exist, atall they have been resolved through negotiation and conciliation. This culture of mutualrespect and deference is been sustained by this Administration deep commitment to rule oflaw and transformative leadership.
  • 59. 59President Jonathan’s policy of open and transparent governance has helped the legislature toeffectively conduct public hearings in fulfillment of its mandates. The legislature conductedthese public hearing with information which federal officers provided it. During the publicprotest over the removal of fuel subsidy, the legislature conducted public hearing where high-level government officials were subpoenaed to appear and provide necessary information.The stance of the executive to fully cooperate with the legislature, these pieces ofinformation were provided, and this led to a far-reaching intervention by the legislature andtimely resolution of the crisis. By signing the Freedom of Information Act, Mr. President hasenabled the growth of the information system of both the executive and the legislature. Thisgrowth means a bright prospect for democracy and good governance. .One of the most important constitutional provisions relating to effectiveness of legislativeintervention is fiscal independence. This government supports fiscal independence for thelegislature. It fully supports making the expenditure of the National Assembly a first linecharge on the Consolidated Revenue of the Federation. The first line charge ensures theautonomy of rulemaking of the National Assembly.3.2 Non-interference in the selection of presiding officers of the NASSThe National Assembly enjoy unprecedented independence in internal management of theiraffairs. This is largely because there are not under any threat of the removal of theirpresiding officers. This contrasts sharply with the experience of the recent past when theNational Assembly suffered incessant removal of presiding officers through interferences ofthe executive branch of government.One benchmark for assessing the quality of a legislature is the presence of independentleadership, one capable of providing the entire legislature with non-partisan, evidence-basedassessment of government activities and their impact on the public. It is important that theexecutive legislative relationship is nurtured by mutual integrity and respect for the rule oflaw. The temptation for the executive is to manipulate the leadership of the legislature inorder to achieve its strategic advantage in the short term. This has been the major cause ofinstitutional instability in Nigerian politics since 1999. But this tendency is now reversed withthe manner President allowed the two chambers of the National Assembly to freely elect theirleadership. The President maintained respect for the expression of the will of the legislatorson who leads the legislative houses. The deference and restraint have deepened theindependence of the legislature and boosted its commitment to co-management of thenational economy.The legislature has the presence of mind to effectively hold the executive in check asprescribed by the constitution. The Presidents continues to hold summits and breakfastmeetings with the leadership of the legislature as a way of building consensus andcommitment of the leadership to his agenda. This proactive approach therefore makes itunnecessary to resort to any form of blackmail or threat to secure legislative support forexecutive actions. The partnership between the executive and legislature today is a result ofgood-natured statesmanship that has provided ample opportunity to discuss issues.
  • 60. 603.3 Cooperation in over sight of executive projectThe power of legislature to oversee executive implementation of the budget and execution oflaws passed by the National Assembly is inherent in the legislative function. Most oversightand investigation duties of the National Assembly are carried out through committees.Members of these committees have the mandate to review executive actions, policies andregulations issued by executive and regulatory agencies to ensure that they are lawful,rational, reasonable, and in furtherance of the declared policies of government. Thesereviews also consider the prudence of such actions, policies and regulation in line with thenational budget and the medium-term expenditure framework.The National Assembly has conducted several investigative and oversight hearings since 2011.The most notable are the hearings on fuel subsidy, financial sector and Security and ExchangeCommission. Oversight and investigation can take several forms. The process of authorizingand appropriating funds for executive branch departments and agencies in committeehearings also affords members and committees the opportunity to review the adequacy ofthose agencies’ operations and programs. At various points in the oversight and investigativeprocess of the National Assembly, legislators have questioned high-ranking members of thecabinet and even Mr. President. They have also demanded the production of criticaldocuments that enjoy executive privileges. The executive have complied with all theserequests.In a process of making laws and implementing them we should expect some measure ofconflict. But, it is to the credit of the Jonathan administration and the leadership of theNational Assembly that it has been able to manage the fallout of the oversight conflicts in amanner that has maintained the integrity of the legislature and the effectiveness ofgovernment. The co-operation the leadership of both the executive and the legislative armshas shown in this regard is quite commendable and exemplary. The conflicts that canpotentially arise from oversights and investigations are legion. They must as a necessaryprocess of constitutional governance arising from the shared powers created under theconstitution. What is most instructive is the capacity to manage these continuing conflicts ina stable manner. This is indicative of the power of leadership that the executive and thelegislature bring to bear in shaping socio-political and economic outcomes. It is not theabsence of conflict that is the goal. It is the stable management of conflicts. Where thisstability exists the outcome has always been positive. This can be seen in the fuel subsidyprobe mentioned earlier and the co-ordinated efforts of both branches of government tocheck waste and encourage probity.3.4 Collaboration in fiscal responsibility through the MTEFThe Medium Term Expenditure Framework, MTEF, represents one key fiscal governanceinnovation, which has the potential to improve planning, budgeting and fiscal responsibility inNigeria. Since the inception of this administration there has been significant improvement inthe use and development of the MTEF. This is one critical policy framework for budgeting
  • 61. 61planning and implementation. It also provides intelligible principle and logical framework forlegislative oversight of budget implementation. Although the MTEF has been part of the FiscalResponsibility Act and has been articulated before 2011, it is only now that the nationalbudget is being clearly based on the provisions of the MTEF. It will be recalled that thepresent budget and those implemented by this administration in the last 3 years have beenbased on the baselines and assumptions of the MTEF.It is noteworthy that before the consideration of the 2013 national budget the NationalAssembly demanded the Ministry of Finance present before it the Medium Term ExpenditureFramework for three years in compliance with the fiscal responsibility law. The Ministrycomplied and this led to a much more coherent and implementable national budget in 2013which has been hailed by the organized private sector as capable of steering forward Nigeria’stransformation agenda.3.5 Effective Co – Management of the Appropriation ProcessThe constitutional premise of governance in Nigeria is the concept of separate institutionssharing political power to manage the national economy. As Justice Stephen G. Breyer of theUS Supreme Court rightly observed, separation of power does not mean separation ofinstitutions. Rather, it means separated institutions working together. The interdependenceof institutions of the state is both a practical and constitutional imperative. The Jonathanadministration believes in this modern concept of separation of power as provided in Sections80-88 of the Constitution. These sections empower the legislature to share in managing thenational economy through insight, foresight and oversight reviews.The role of each branch of government in the management of national economy through thenational budget is still an unclear issue in the relationship between the legislature and theexecutive in the appropriation process. The standard constitutional doctrine is that budgetingfederal expenditure is a responsibility of the executive. The legislature plays the role ofapproving the budgeting and making a law of the land. The right of approval has beenadmitted to include the review but not the right to initiate new expenditure heads outsidewhat the President has provided to the National Assembly. Contention over the boundaries ofresponsibility in the co-management of the national economy through the budget has been adrag on efficient service delivery.President Jonathan has shown remarkable political skills in ensuring that this controversy doesnot undermine the efficiency and effectiveness of policy and program implementation. Thereis stability in the budget process even as constitutional controversy over the extent of thepowers of the National Assembly over the budget remains. There has been debate as towhether the budget passed is the budget of the executive and therefore the limits or scope ofamendments the National Assembly can make on the budget. The controversy has nowextended to the implementation of the budget. There are no determinative judicialprecedents to resolve these conflicts. But President Jonathan’s tolerant and deferentialleadership has smothered these conflicts and provided opportunity for the legislature to gain
  • 62. 62experience and capacity in co-management of national economy. The stability of thebudgeting process has huge economic benefits in fostering public and private sectorinvestment in the Nigerian economy.The 2013 budget is a landmark in setting a standard for timely presentation of the budget.The Ministry of Finance directed all Ministries, Departments and Agencies (MDAs) to submittheir budget request before the end of October so as to ensure that the budget is readybefore the end of the last fiscal year. The preparation for the budget was painstaking buttimely. This resulted in a record passage of the 2013 budget. In the past the criticism hasbeen that the failure to present and pass the budget on time adversely affected economicactivities as investors have no clear framework for investment in the economy. Nigerianbudgets have been unduly delayed because of lack of early preparation by the budget andtimely consideration by the legislature. The crisis of late and controversial budget passage ledto the clamour for the creation of a National Assembly Budget and Research Office (NABRO)which will provide the legislature with technical capacity to manage better the budgetprocess.While the NABRO is yet to take off government has solved the major challenge to timely andintelligent budgeting by reforming the Budget Office of the Federation and streamlining thebudget preparation process for the entire public service. With the sanitization of thebudgeting process at the executive branch the government will focus attention on supportingthe legislature to fully operationalize the proposed NABRO. A fully reformed budgetingprocess will make governance smart and effective.In promoting the independence and effectiveness of the legislature President Jonathan isproviding a sustained basis for the growth of democracy and the national economy. Thelegislature performs very critical functions in managing the national economy in the mannerprescribed by Chapter 2 of the Constitution.
  • 63. 63CHAPTER FOUR: CORRUPTION - SLAYING THE DRAGON WITH THE RULE OF LAW4.1 Corruption and Developing ChallengesThe Jonathan administration recognizes that corruption is a major constraint to economic andsocial development in Nigeria. It constitutes a major disincentive for investment in theNigerian economy and increases the cost of governance and doing business. It also constitutesa direct and inordinate taxation on the people. The widespread international perception ofNigeria as a corrupt country has caused incalculable damage to the dignity and honour ofmany honest and diligent Nigerians and to the country’s global competitiveness. While, theperception of the prevalence of corruption in Nigeria is highly exaggerated many ways,nevertheless, we believe that corruption wherever it exist in Nigeria needs to be urgently andsystematically addressed.The Jonathan administration is addressing and containing the challenge of corruption with therequired urgency and commitment. The government is determined to make Nigeria a keyglobal economic power, and therefore recognizes that it cannot tolerate any degree ofcorruption. As long as Nigeria is widely perceived as corrupt, it will be difficult to attract thelevel of investment required for fast-tracked economic growth to protect the honour anddignity of Nigerian citizens across the world.Previous administrations in Nigeria have recognized the danger that such pervasive corruptionposes to development in the country and have embarked a war against corruption, as apriority agenda. Since 1999, “the war against corruption” has remained a core commitmentof government. The public criticism is that in spite of government’s expression ofcommitment to fighting corruption, the scourge remains rampant. While some questionswhether the Jonathan has raised the bar on fighting corruption. There is no doubt, that thegovernment has done a substantive work against corruption. The government now pursues amore strategic, comprehensive and effective campaign against corruption and has gonebeyond popular sentiments to address the root causes of corruption and enhance the capacityof the institutions to resist and overcome corrupt influences.President Jonathan’s approach in fighting corruption is to focus on building strong institutionsthat have the capacity to overcome corrupt influences and not just to sermonize aboutcorruption. This approach uses the rule of law as a framework to fight corruption sincecorruption is a feature of weak rule of law and weak institutions.Fighting corruption through strengthening rule of law institutions and entrenchingtransparency and accountability mechanisms in the public service procurement and projectimplementation is efficacious because corruption is primarily a derogation of rule-basedsystem. As Daniel Kufamman puts it, “Corruption equals monopoly plus discretion minusaccountability. Whether the activity is public, private, or nonprofit, or whether it is carriedout in Ouagadougou or Washington, one will tend to find corruption when an organization or a
  • 64. 64person has a monopoly power over a good or service, has the discretion to decide who willreceive it and how much that person gets, and is not accountable”.2Corruption therefore is a failure of institutions and had a relationship with the quality ofdemocratic control in a system. The focus of government since 2011 has been to strengthenthese system weaknesses and increase the capacity of anti-corruption institutions to deter,detect and punish corrupt practices. Beyond this, the government also focuses attention onaddressing the social and economic conditions that reinforce the incentive for public officersand private actors to abuse public trust.In the past, a major challenge of prosecuting the war against corruption has been thesubordination of the Economic and Financial Crimes Commission (EFCC) to the Ministry ofJustice in terms of exercise of its prosecutorial mandate. The EFCC is designed to be anindependent anti-corruption agency that exercises independent judgment about who toinvestigate and prosecute. The relationship between the leadership of the EFCC and theMinistry of Justice has been a major cause of discredit the anti-corruption campaign. But bygranting the EFCC clear prosecutorial independence from the Attorney General and Ministerof Justice, President Jonathan has restored the integrity of the anti-graft agency and thecredibility of the war against corruption.4.2 Right of Fair Hearing in Corruption Cases:In the last two years, the EFCC has remained committed to preventing financial and economiccrimes and prosecuting those who are guilty of such crimes. What has also changed is that theCommission is now truly independent of the serving Attorney General and has no need to baseits enforcement actions on the political desires or interests of top government officials or theruling party. The EFCC continues to arrest and prosecute high profile public officials andbusiness leaders and those so within the rule of law and due process, in taking action againstan alleged offender. We have a real opportunity to assess the effectiveness and institutionalintegrity of the new EFCC in the ongoing trial of those alleged to be involved in Fuel SubsidyScam and the Police Pension Scam. In each of these cases without any form of sensationalismor resort to public media lynching of alleged culprits, the anticorruption agencies conductedpainstaking investigations of the alleged scams and followed the evidence trail. Today, thetrials are going on well and Nigerians have strong faith that those who are guilty will beconvicted and punished according to the law.President Jonathan’s efforts at strengthening the capacity of state institutions to fightcorruption is not limited to granting independence to EFCC and other anti-corruptionagencies. It extends to establishing a broad institutional basis for transparency andaccountability through a freedom of information regime that empowers citizens to scrutinizethe actions of public officials and institutions. The enactment of the Freedom of InformationAct is a paradigm shift in democratic governance in Nigeria. It has empowered civil societygroups to petition public institutions to supply critical information that helps them to monitor2Robert Klitgaard, International Cooperation against Corruption, Finance and Development (March, 1988) pages 3-4
  • 65. 65and petition corrupt public officials. The more sustained approach to fighting corruption is toempower citizens to demand transparency and accountability for use of public funds. Civilsociety groups have petitioned the Ministry of Justice, the Central Bank, NNPC, andPresidency for information on public expenditure to help them engage in anti-corruptioncampaigns. This is what the President has been doing in the last two years. He is recreatingthe institutions of good governance such that corruption will be easily prevented, detectedand prosecuted whenever it occurs.4.3 Review of Past Transparency ReportsThere has been progress in the struggle to combat corruption in Nigeria and many otherAfrican countries, particularly due to the leadership and concerted awareness-raising effortsby international organisations, complemented by many domestic groups over the past fewyears.The achievements of the present administration in combating corruption through theapplication of the rule of law are as follows: Signing of the Freedom of Information Act into law by President Jonathan in May 2011represents a watershed in the anti-corruption crusade in Nigeria. This piece oflegislation, which stalled under administrations since 1999, was signed into law by Mr.President to usher Nigeria into the league of countries where transparency ingovernance is entrenched and citizens are granted unfettered access to informationabout government activities. Today Citizens have the right to demand and seekinformation from any government agency on the administration of the Nation. Pressfreedom is accommodated and critics are given room to air their grievances. In the civil service the fight against corruption has also taken centre stage. “TheJonathan administration has uncovered fraud through the detection and deletion ofover 73,000 ghost/fake pensioners from the Head of Service/Police Pension Office;recovery and saving over N225 billion from the two pension offices; capturing thebiometric data of over 170,000 pensioners; halting the monthly theft of over N4 billionfrom the national treasury; reducing fraud by saving over N500 million monthlythrough the police pension releases, which represents 50 percent of the N1 billiondisbursed monthly in the past; and the discovery of over 50,000 unpaid pensioners andimmediate payment of their entitlements.” Federal Government discovered a fraud of over N2.7 billion in Pensions’ fund. Thegovernment seized about 200 properties, including hotels and cash worth billions ofnaira from corrupt public officials. This led to the arrest and on-going prosecution ofpension fraud suspects by the Economic and Financial Crimes Commission (EFCC),
  • 66. 66subsequently, government introduce a more efficient tamper-proof pension fundsmanagement system. To further the fight against corruption through the application of the rule of law, thePresident set up an Independent Presidential Committee to monitor the activities ofthe Niger Delta Development Commission (NDDC). The Committees report furtherexposed the deep corruption going on in the Commission through diversion ofgovernment contracts. Another giant stride is the suspension of Justice Abubakar Talba of the FCT High Court,Gudu, Abuja. The 12-month suspension follows the controversial judgment hedelivered in respect of John Yusufu, who was prosecuted by the Economic andFinancial Crimes Commission, EFCC, over an alleged N32.8 billion Police PensionFraud. The President ensured that he gave the judiciary the much needed freedom toadminister punishment in cases of abuse of power and lack of respect for the rule oflaw. There has been judicial and legal reforms by the President, with a major step in theAdministration of Criminal Justice (ACJ) Bill 2012 by the Office of the AttorneyGeneral and Minister of Justice. The bill is currently before the National Assembly andseeks to ensure that the administration of criminal justice in Nigeria promotes speedydispensation of justice, protection of the society from crime, and protection of therights and interests of the defendant and the victim. The recent dismissal of three judges found to have compromised their offices is anunmistakable signal of zero tolerance for corruption in the judiciary. In the management of the fertilizer scheme, the federal Government now uses the e-wallet scheme to capture the data of farmers in the country through registrationdesigned to enhance farmers’ access to fertilisers, seeds and other farm inputs. Thegovernment does this through the use of GSM phone numbers of the farmers capturedduring the data exercise. This has reduced corruption and ensured that the productgets to the end users. Before now, there was huge corruption in the fertilizerdistribution scheme where rich private and public figures usually hijack the subsidizedfertilizer from the federal government and then resell it to the farmers at anexorbitant price. However with this new system, a deliberate effort has been made toensure that farmer’ gets the fertilizers directly as it should be the case. The government is also considering the call for the application of the voucher systemin the distribution of fertilisers to peasant farmers who do not own cell phones andGSM networks in rural communities.
  • 67. 67 Nigeria was one of the first signatories to the Inter-governmental Action Group againstMoney Laundering in West Africa (GIABA), and recently the President signed the Anti-Money Laundering Act into law. Power sector reforms is another area where Nigerians appreciate the efforts of theGoodluck Jonathan administration in reducing incentives for corruption and ensuringbetter service delivery. The fuel subsidy scandal saw the exposure of huge corruption in the oil sector whichhad been a conduit through which huge funds were siphoned from the NationalTreasury. With this exposure, Nigerians are now fully aware of what goes on and whodoes what in this sector. The President has also set up various committees toinvestigate corruption in this sector. The fight against corruption in the oil and gas sector of the Nigerian economy wasperhaps the most fundamental of the current administration’s effort at combatingcrimes against the Nigerian economy. A major component of the on-going anti-corruption reform in Nigeria is the establishment of the Nigerian Extractive Industryand Transparency Initiative (NEITI), and to meet up with global best practices thePresident Jonathan recently forwarded the Petroleum Industry Bill (PIB) to theNational Assembly for passage into law. The independence of the legislature and the judiciary has been one of the greatestachievements of the administration which has seen a great level of stability andimprovement in that arm of government especially when compared to previousadministrations. The three tiers of government now meet regularly to review andappraise progress and strategy. All these feats were achieved within the confines of the rule of law which thePresident has vowed to uphold. He believes in respect for the Constitution and followsthe process despite pressures from different quarters.In arresting the menace of corruption in Nigeria, we must understand that it is not a fight tobe left for the government alone, but rather would require a concerted effort by individualsfrom all sectors to complement the effort of the government. Corruption must also be foughtwith every sense of diligent it deserves by government and individuals. Otherwise, Nigeria’ssustainable development will be undermined with dire consequences on the economy, thecitizenry and on our collective image globally. The citizens are therefore encouraged to workassiduously with government agencies in the fight against corruption.
  • 68. 68CHAPTER FIVE: INSECURITY - PROTECTING THE STATE AGAINST TERRORISM AND INSURGENCY5.1 A New Approach to Fighting InsecurityNigeria is witnessing a state of violence and insecurity resulting from the activities of somegroups. In this regard, government is dealing strategically with this threat by focusingattention on protecting the civic space that assures the protection of every citizen. Whileeffectively combating terrorism and other forms of violent attacks on the State, governmenthas demonstrated how to protect civil liberties and at the same time, defeat terrorism. Therecent declaration of state of emergency by Mr. President in three States, namely: Adamawa,Borno and Yobe gravely affected by terrorist activities of the Boko Haram sect is a cleardemonstration of its resolve to rid the country of insecurity and guarantee democraticfreedom. This was done with the retention of the democratic structures in the affected Statesand in keeping with the provisions of Section 305(1) of the Constitution and principles ofdemocracy. By this innovative approach to fighting terrorism and insecurity, government hasestablished a benchmark on the war against terrorism, providing an example of effective lawenforcement and principled defense of democratic rights.5.2 Insecurity as a Challenge to DemocracyNigeria is not alone in the world in facing the challenge of insecurity which has become thepersistent feature of new global order caused by fundamentalist groups. While, the insecurityin the country has its own history and contexts, many trace the origin of the violence to theincreasing agitation of communities for control of the country’s natural resources, agitationover access to economic resources and to the exclusive benefits of land rights. Also, there is asense in owning up to the fact that the long years of military rule account for the upsurge ofviolence. With the return to democratic rule in 1999 and the attendant reduction in citizens’ownership of governance, violent expression of expectations became ways and means ofcreating identities and solidarities during that era of military rule. Under the militarygovernment, with a single command structure, dealing with such violent expressions ofexpectation often took the form of extreme repression, thus further closing off the publicspace to citizens.Civil democracies everywhere are disciplined by the ethical nature of democracy and Nigeriais no exception. Though, the cultural and religious diversity of our federation poseschallenges to governance as every policy must be expressed and implemented in ways thatmeet citizens’ conflicting expectations, and they are being addressed holistically bygovernment. In recent years, religious fundamentalism has become a social problem wehave had to deal with like most governments in Europe and North America as well as in theSouth East Asian countries.5.3 Current State of InsecurityThe Nigerian state faces three fundamental security challenges posed by extremist groups likeBoko Haram in the North, the Movement for the Actualization of the Sovereign State of Biafra(MASSOB) in the South East and the Oodua People’s Congress in the South West. Though, the
  • 69. 69greater challenges are in the North where Boko Haram continues its intense violent campaignagainst citizens that have led to loss of lives and the destruction of property in Borno, Yobe,Adamawa, Kano, Bauchi and Gombe States.While attacks have been launched on government and international institutions like theNigeria Police Force Headquarters and the United Nations House in Abuja in the FederalCapital Territory, government has contained the violent activities of the Boko Haram sect byrestricting it to communities in the North East where the Joint Task Force (JTF) of ournational security agency is currently engaged in anti-terrorism battle. The challenge ofcontaining a group with no identifiable structure is huge; but within our broad counter-terrorism coordinated framework, government has scored several successes with the arrestsand trials of many insurgents.The activities of the Movement for the Actualization of the Sovereign State of Biafra (MASSOB)and the Oodua People’s Congress (OPC), though not as violently intense as those of BokoHaram, they still pose serious security challenge to the Nigerian state. The Nigeria PoliceForce is upgrading its intelligence and counter-violence infrastructure across the country torespond to the internal security challenges in many robust ways to protect citizens and secureproperty, and restore law and order.The Niger Delta region has enjoyed a period of peace since the Amnesty Programme of thegovernment was initiated in 2009, and with many militants currently being rehabilitatedunder the Programme and with many other militant activists serving as liaison between thegovernment and host oil communities of the Niger Delta, law and order have been restored inthat region. Though, in the years following the implementation of the Amnesty Programme,government experienced an upsurge in the incidence of kidnapping and oil theft in the region.Although, the upsurge cannot be traced to the demobilization of militant activists, theactivities of organized criminal syndicates are responsible for these oil thefts; and as agovernment we are mobilizing national security agencies to arrest the criminal menace whichhas serious implications for our national economy.5.4 Protecting the State against Terrorism and InsurgencyThe administration recognizes its fundamental responsibility to protect the Nigerian State andpreserve the lives and property of all citizens and residents in Nigeria. To achieve this,government has dedicated itself to preventing a state of terror, lawlessness and disorder inthe country. Also, government will enforce respect for the rule of law and deference toestablished State institutions. Whenever any group organizes itself against the prevailing lawsand established democratic institution, government will stand up and effectively remove suchthreat to ensure that the protection of lives and property is not compromised. In this regard,government has put in place the following measures: Containing terrorism and insurgencies through consultation; Mobilising civic understanding of terrorism as greatest threat to social and economicwell-being and deployment of communal and local resources against terrorism; Increasing citizen consensus on the dangers of terrorism;
  • 70. 70 Granting amnesty to Niger Delta activists and Boko Haram; Ensuring stronger co-ordination around the security agencies and processes; and Promoting better co-operation and intelligence exchanges with internationalmultilateral and security institutions.Though the insecurity being currently experienced was inherited, the government is workinghard to keep Nigeria safe, enforce the rights of the people and maintain the integrity of itsdemocratic institution. While government is yet to fully stamp out terrorism from our shores,there is a massive drop in successful acts of terrorism as better intelligence gathering and co-ordination by the security agencies have averted many planned acts of terrorism. In addition,government has successfully weakened and obliterated the ability of terrorist groups toattack the country.
  • 71. 71CHAPTER SIX: INDEPENDENT JUDICIARY AND THE INTEGRITY OF ADMINISTRATION OF JUSTICEIn the last two years, the Jonathan administration has strengthened the independence ofjudiciary by improving the integrity of the appointment of judges and enhancing their securityof tenure. This is in accordance with the concept of the supremacy of the law which is thebasis of our constitutional democracy. This makes the judiciary a cornerstone of democraticgovernance. The constitution authorizes the regular courts to exercise the power of judicialreview of both legislative and executive actions. The Supreme Court has ultimate jurisdictionto settle controversy on the constitution. The position of the courts in the constitution is suchthat democratic governance cannot be effectively realized unless the judiciary isindependent.The Jonathan administration has secured the independence of the judiciary by enforcingthose institutional and constitutional structures and infrastructure that protect and shieldjudges from undue interference. By doing this, the government has protected the integrity ofjudicial decisions and of the effectiveness of administration of justice. It is in conformity withthis principle that President Jonathan did not interfere in the appointment of federal judgesand has insisted on strict observance of the constitutional provisions and international humanrights principles on the independence of the judiciary. Federal judges are free to renderjudgments based on the law without considering whether they go against the government orthe ruling party. These judges appointed under the tenure of this government have boldlyentered judgment against the government in deserving cases without fear of executiverecrimination.This Administration attaches importance to independent judiciary which has been able tofreely do justice in cases between citizens and governments. The Transformation Agenda ishinged on a new commitment to the rule of law. A fundamental component of the rule of lawis a fair and efficient administration of justice. The premise of democracy will be defeated ifcitizens don’t have effective remedies for violations of their rights.6:2: National Judicial Council (NJC) – Liaison between Judiciary and the GovernmentA fair and effective administration of justice requires that judges be appointed through dueprocess. There is a need for an established disciplinary process that enforces ethical conductsamongst judges. For this Administration, the quality of jurisprudence is determined by thequality of judicial officers that are appointed to our courts, thus the selection andappointment of judicial officers are made by the National Judicial Council (NJC), theconstitutional body charged with the responsibility to exercise such functions. Thisconstitutional framework provides the NJC with the powers to discipline erring judicialofficers and guarantees them the security of tenure of their judicial offices. As anadministration that desires to have strong and independent judicial institution, the JonathanAdministration has refrained from interfering in the appointment and discipline of judicialofficers.In the last two years, the NJC has risen to the occasion by ensuring integrity in theadministration of justice. It has been discharging its responsibilities effectively because the
  • 72. 72Administration is sincerely interested in a self-regulated judiciary. The JonathanAdministration has not interfered with the functions of the NJC. It has rather enabled it andensured adequate funding for the judiciary, such that its independence is not compromised.Government has pursued vigorous policies of securing the independence of the judiciary,strengthening the structures and capacity of courts through non-interference in theappointment and disciplining functions of the National Judicial Council, and ensuring fiscalindependence for the judiciary in terms of disbursement of budgetary allocations for capitaland recurrent expenditure.This Administration has also appointed the first female Chief Justice of Nigeria, Justice AlomaMariam Mukhtar, Grand Commander of the Order of the Niger (GCON), to further ensuregender balance in the administration of justice. The first female Chief Justice hascommenced an unusual campaign against corruption in the judiciary. For the first time since1999, the country is witnessing massive investigation of judicial officers by the NJC. On 20thFebruary, 2013, the National Judicial Council recommended to the President and GovernorJonah Jang respectively, the compulsory retirement of Justices of the Federal High CourtLagos and Plateau states. The NJC also suspended Justice of the High Court of the FederalCapital Territory for one year. President Jonathan approved the recommendation for theretirement of Justice of the Federal High Court of Lagos.There are institutional constraints which militate against the effective administration ofjustice. The long years of military dictatorship accounted for the lopsided appointments ofjudicial officers; and the derogation on the powers of the courts through ouster clauses ofdecrees effectively eroded the security of our courts. The Administration is committed tosecuring the country’s democracy through constitutionalism and the rule of law; to strengthenthe capacity of the judiciary and the administration of justice institutions for the purpose ofpromoting good governance and to improve the welfare of the people on the principles offreedom, equality and justice.
  • 73. 73PART TWO: ECONOMIC AND SOCIAL PERFORMANCECHAPTER SEVEN: INTRODUCTION7.1 BackgroundA review of the Nigerian economy clearly indicated that the country faced a number ofdevelopment issues at the inception of the current Administration. Some of the issuesincluded a high, non-inclusive growth, high rates of unemployment and poverty, wideningdisparity in income, depleting foreign reserves, rising recurrent expenditure and overall fiscaldeficit. Others included the multiplicity of projects in the face of dwindling resources, non-diversification of the economy, divergence between the annual capital budget and medium-term plans and lack of consistency, continuity and commitment (the 3Cs) to agreed policies.It is to address these challenges that the government developed the Transformation Agenda(TA). The TA demonstrates the desire and indeed the country’s capacity, to transform ourthinking, institutions and human capital to support the aspirations of the Nigerian people. TheTransformation Agenda is the blueprint of the key policies, programmes and projects to beimplemented during 2011 – 2015. It is not a standalone, strategic plan, however, as it buildson the earlier foundations of the 1stNational Implementation Plan (NIP) of the NV20:2020 andthe wide consultative processes associated with it.7.2 The Transformation Agenda and Nigeria Vision 20: 2020The Transformation Agenda was derived from the Nigeria Vision 20:2020 (NV20:2020), whichis an articulation of the long-term plan to launch Nigeria onto a path of sustained social andeconomic progress and accelerate the emergence of a truly prosperous and united nation.Recognizing the enormous human and natural endowments of the country, the blueprint isNigeria’s roadmap to improve the living standards of its citizens and place the country amongthe Top 20 economies in the world by 2020, with a minimum GDP of $900 billion and a percapita income of no less than $4000 per annum.The NV2020 has two broad, fundamental objectives, namely: optimizing human and naturalresources to achieve rapid economic growth, and translating that growth into equitable socialThe Vision StatementBy 2020, Nigeria will have a large, strong, diversified, sustainable and competitive economythat effectively harnesses the talents and energies of its people and responsibly exploits itsnatural endowments to guarantee a high standard of living and quality of life to its citizens.
  • 74. 74development for all citizens. These aspirations are defined across four dimensions: social,economic, institutional and environmental dimensions.The three pillars of the Vision 20:2020, represent the building blocks of the future thatNigerians desire. The pillars are guaranteeing the productivity and wellbeing of the people;optimizing the key sources of economic growth and fostering sustainable social and economicdevelopment. The effort of Governments at both the state and federal levels to consistentlytranslate strategic intent into action and results on a sustainable basis, is recognized as animportant factor in making Vision 20:2020 a reality.7.2.1 The Transformation AgendaThe Transformation Agenda is a medium term, development strategy to speed up Nigeria’smarch towards becoming one of the twenty largest economies by the year 2020. It serves as aframework for the actualization of the Federal Government’s economic growth agenda, from2011-2015. It was developed to consolidate the gains of the reforms of the last decade and isanchored on the pillars and specific targets of the Nigeria Vision 20:2020 (NV 20:2020). Thus,as a roadmap for securing a better future, the Transformation Agenda is targeted at:a. creating decent jobs in sufficient quantities to address the protracted problem ofunemployment and reduce poverty;b. laying the foundation for a robust and inclusive growth of the Nigerian economy; andc. improving, on a sustainable basis, the well-being of all classes of Nigerians regardlessof their personal circumstances and location.To achieve these strategic goals, the government has focused attention on priority sectoralissues, including agriculture, manufacturing, oil and gas, trade and investment, culture andtourism, education, health, youth and women development, power, transport, water,security, public service reforms, anti-corruption, as well as foreign and economic diplomacy.These have been grouped into four thematic areas of Governance, Human CapitalDevelopment, Infrastructure and Real Sector, as shown in figure 7.1, below. The programmesand projects in the Transformation Agenda are the priority policies, programmes and projectsof Federal Ministries, Departments and Agencies (MDAs) of government that have hightransformative impact on the economy and the people, during 2011-2015. The Pillars of theTransformation Agenda are summarized in Figure 7.1.
  • 75. 75Figure 7.1: Pillars of the Transformation AgendaSource: NPC, the Transformation Agenda, 2011The development priority during the period is shown in figure 7.2.Figure 7.2: Development Priorities of the Transformation AgendaSource: NPC, the Transformation Agenda, 2011The economy is expected to remain strong and stable during the implementation of theTransformation Agenda with an average GDP growth of 7.76 percent during 2011 - 2015. Thedetail macroeconomic assumptions for the plan period are as highlighted in Table 7.1.GOVERNANCESecurityPulic Service ReformAnti-CorruptionForeign Policy and EconomicDiplomacyHUMAN CAPITAL DEVELOPMENTEducationHealthLabour and ProductivityWomen and Youth DevelopmentINFRASTRUCTUREPowerTransport (Roads, Rail, InlandWaterways & Seaports)HousingWater for Irrigation and IndustriesREAL SECTORAgricultureManufacturingOil & GasSolid MineralsJob CreationPoverty ReductionNational Food SecurityNational Social securityStrong Non-inflationary EconomicGrowth
  • 76. 76Table 7.1: Macroeconomic Assumptions for 2011-20152011 2012 2013 2014 2015Crude Oil Production (mbpd) 2.3 2.48 2.50 2.50 2.50Crude Oil Price (US$) 75 72.00 72.00 74.00 75.00Real GDP Growth Rate ( percent) 7.36 7.61 7.65 7.84 7.93CPI Inflation ( percent) 10.8 9.50 9.44 9.35 9.16Nominal Exchange Rate (N/US$) 153.9 155.00 159.50 157.00 154.00Population Growth Rate (Percent) 3.2 3.00 2.80 2.80 2.80Growth in Non-oil Exports 21.34 30.50 31.00 31.50 32.00External Debt ( percent annualchange)23.76 54.58 33.88 23.73 19.33Monetary Policy Rate 12.00 12.50 12.13 12.00 11.64Fiscal Deficit ( percent of GDP) 3.11 2.85 2.95 2.97 3.00Source: NPC, the Transformation Agenda, 20117.3 Key Deliverables of the Transformation AgendaThe Transformation Agenda is expected to deliver key macroeconomic and other sectoraloutputs and outcomes. In particular, the following key deliverables are targeted:7.3.1 Macroeconomic ObjectivesA stable and strong macroeconomic environment that is investor friendly and provides forimproved standards of living for the generality of Nigerians. The key targets include:I. a robust real GDP growth rate of 7.76 percent per annum over the period whichtranslates to a nominal GDP of US$355.8 billion (N54.8 trillion) by the end of 2015;II. greater coordination and harmony between fiscal, trade and monetary policies;III. greater fiscal prudence and low inflation;IV. reducing the ratio of recurrent to total expenditure to not more than 60 percent;V. further liberalization and deregulation of the economy; andVI. reduction in the unemployment rate in the country.7.3.2 GovernanceThe key deliverable of the Governance sector is to maximize the benefits the citizenryderives from government through building more effective institutions, crating appropriatepolicies and achieving more efficient use of public resources. Specifically, it seeks to:I. Transform the public service into a proactive, competent and virile one, providingpolicy advice and guidance for a rapidly growing economy;
  • 77. 77II. Achieve greater independence for the judiciary in terms of funding and tenure andimproving efficiency in service delivery;III. Link foreign policy to the domestic agenda of government through greater emphasis oninvestments and economic cooperation, and the use of economic diplomacy in defininginternational relations and projecting national interest; andIV. Facilitating the creation of a dynamic, constitutionally effective and publiclyresponsive legislature, that is proactive in its legislative duties.7.3.3 Human CapitalHuman Capital Development is strategic to the socio-economic development of a nation. Thespecific targets for the sector include:I. Promoting the enrolment into school of all primary school age children, irrespective ofthe income and other circumstances of their parents;II. Using the NSHDP as the springboard for transforming the health sector;7.3.4 Real SectorThe deliverables for the sectors are as follows:I. ensuring food security and sustainable access to food for all Nigerians;II. Improving manufacturing by broadening the nation’s productive base, promotingprivate sector investments ; andIII. enhancing private sector investment in both upstream and downstream activities ofthe oil and gas industry.7.3.5 InfrastructureThe specific deliverables for infrastructure include:I. Intensifying the investment in four major areas of power generation, transmission,distribution and alternative energy;II. developing a national, knowledge-based economy (KBE) 10-year Strategic Plan,sustained human capacity development in ICT;III. evolving a multimodal, integrated and sustainable transport system;IV. producing and implementing a unified and integrated infrastructure development forhousing;V. ensuring sustainable and optimal performance of water supply schemes, facilities andservices; andVI. investing in rail, road and water transport infrastructure, reclamation of land andshorelines and skills acquisition in the Niger Delta and open up new districts in theFCT.
  • 78. 787.4 Methodology7.4.1 ApproachThe approach adopted for producing this midterm report is very participatory and highlyinclusive. In particular, a Ministerial Committee was constituted by Mr. President to lead theprocess. Members of the committee include:i. Honourable Minister/Deputy Chairman, National Planning Commission (Chairman);ii. Coordinating Minister for the Economy/Honourable Minister of Finance;iii. Honourable Minister of Agriculture and Rural Development;iv. Honourable Minister for Transport;v. Honourable Minister of Lands, Housing and Urban Development;vi. Honourable Minister of Information;vii. Honourable Minister of State for Health;viii. Honourable Minister of Foreign Affairs I;ix. Honourable Minister of State for Works;x. Chief Economic Adviser to the President;xi. Special Adviser to the President on Performance Monitoring and Evaluation;xii. Director-General, Bureau of Public Procurement;xiii. Senior Special Assistant to the President on Millennium Development Goals;xiv. Senior Special Assistant to the President on Public Affairs;xv. Senior Special Assistant to the President on Research, Documentation andStrategy; andxvi. Senior Special Assistant to the President on Administration.The Committee was supported by a Technical Committee, consisting of officials of the keyMinistries, Departments and Agencies (MDAs). The Members are:i. Director, (Macroeconomic Analysis), National Planning Commission (Chairman)ii. Director, M&E/Federal Ministry of Transportiii. Director, Federal Ministry of Informationiv. Director, Bureau for Public Procurementv. Director, Office of the SAP-PMEvi. Director, M&E/National Planning Commissionvii. Deputy Director, ERPM/Federal Ministry of Financeviii. Deputy Director, PRS/Federal Ministry of Agricultureix. Deputy Director, Federal Ministry of LH&UDx. Deputy Director, OSSAP-MDGsxi. Special Assistant (HMSH)/Federal Ministry of Healthxii. Special Assistant (HMSW)/Federal Ministry of Worksxiii. Special Assistant to the CEA to the Presidentxiv. Assistant Director PRS/Ministry of Foreign Affairsxv. Technical Assistant to the Hon. Minister, NPC (Macro)xvi. Technical Assistant to the Hon. Minister, NPC (M&E)
  • 79. 79xvii. Deputy Director (F&SPC)/NPC (Head of Secretariat)In carrying out the assignment, letters were sent to all the Ministries, Departments andAgencies, requesting them to identify key policies, projects and programmes executed bythem during the last two years that should be highlighted in the Report. The Ministers wereequally requested to forward information on specific areas of the report outline, which fallunder their jurisdiction. In this regard, the letters sought data/information in the followingareas: Policy thrust, objectives, strategies and targets as contained in theTransformation Agenda; List of projects in the Plan; and Actual expenditure on and level of completion of projects (May 2011 - May 2012).Similarly, the Committee extensively examined the background documents, as well as thesubmissions of MDAs in drafting the Report. Several brainstorming sessions were held by thedrafting Team members, to deliberate on emerging information from the field, in addition tovarious interactive sessions with representatives of government agencies. Technical WorkingGroups (TWGs) and a drafting team were set up to analyse the information. An EditorialCommittee was also set up to work in collaboration with the team, to produce this report.7.4.2 ScopeThe Report represents a Mid-Term Review of the Performance of the current Administrationfrom May 29, 2011 – May 29, 2013. It evaluated the targets set vis-à-vis the achievementswithin the period, and also identified the gaps and issues and challenges that hindered orboosted performance. Finally it explored the outlook and prospects for the second half of theAdministration.7.4.3 Sources of DataPrimary data was collected directly from the MDAs for the report. In addition, the reportbenefitted from secondary data and other information sources. Some of these are highlightedbelow: NV20:2020 document 1stNational Implementation Plan 2010 – 2013 Transformation Agenda 2011 Annual Performance Monitoring and Evaluation Report 2011 and 2012 Annual Performance Review of the Economy Ministerial Press Briefings Mid-term Review Report of the 1stNational Implementation Plan Report on 100 days in office presentations (clarify before use) National Good Governance Tour Report Sure and Steady Transformation – Progress Report of President Goodluck Jonathan’sAdministration, Vol. 1
  • 80. 80 2012 SURE-P Annual Report 2012 Ministerial Performance Contract Presentations to the Federal Executive Council Administrative data from Federal MDAs Medium Term Expenditure Framework (MTEF) 2011 – 2013 Central Bank of Nigeria’s Annual Reports OSSAP – MDG’s Press Briefing on 1000 Days in Office Federal Inland Revenue Services (FIRS) World Bank’s Doing Business Report (2011 – 2012), World Development Report National Newspaper Reports Power Sector Reform Map African Development Bank’s Country Strategy Paper for Nigeria, 2011 – 2016 1999 Constitution of the Federal Republic of Nigeria International Rating Organisations, etc.7.5 Organization/Structure of Part Two of the ReportThis Part of the report is organized into 12 chapters consisting of chapters 7 - 18. In thisregard, Chapter 7 contains the introduction; Chapter 8 focuses on the macroeconomicperformance; Chapter 9 addresses the key reforms of the administration and outcomes.Chapter 10 deals with Good Governance; Chapter 11 highlights ways of sustaining economicgrowth through the productive sector; Chapters 12, 13 and 14 addresses issues of quality andaffordable infrastructure, effective human capital and social development and ensuringsecurity and safety of all Nigerians respectively. Chapter 15 dwells on State Governments;Chapter 16 addresses issues of the private sector and international development partners;Chapter 17 discusses the outlook and prospects of the nation, while Chapter 18 concludes thereport.
  • 81. 81CHAPTER EIGHT: MACROECONOMIC PERFORMANCE8.1 Global DevelopmentsThe global environment has been quite challenging and uncertain during the period underreview. Most of the challenges were as a result of the global economic and financial recessionthat started with the crisis in the USA, sub-prime market in 2008. This escalated to mostregions of the world. However, there was a brief rebound in 2010, followed by a slowdown in2011 and 2012; though in 2013, signs of recovery are becoming more visible. Thus, the globaleconomy has been going through a period that can be best described as mixed.8.1.1 Economic GrowthThe global economy grew by -0.6 percent, 5.2 percent 4.0 percent and 3.2 percent in 2009,2010, 2011 and 2012 respectively (see Figure 8.1 and Table 8.1). It is also projected to growby 3.3 percent in 2013. The major driver of the recovery from the recession, particularly in2010, was the fiscal and monetary stimulus undertaken in most of the affected countries. TheUS, for example, undertook the $700 billion Troubled Asset Relief Program (TARP) in October2008 and another $787 billion fiscal stimulus in January 2009. Other countries such as China,Australia, UK and Nigeria undertook different forms of fiscal stimulus, as a strategy forreviving economic activities.Figure 8.1: Growth in Selected Regions of the WorldSource: IMF, World Economic Outlook Database, April 2013.In 2011 when the present Administration took office in Nigeria, global economic recoveryremained sluggish in most regions of the world, especially in the developed economies.Recovery was uneven, business confidence fell sharply and downside risks grew. Thus theglobal economy slipped into another state of uncertainty. Sources of the relapse include thedevastating earthquake and tsunami that hit Japan, unrest in some oil-producing countries inthe Middle-East, stalled handover from public to private demand and threat of “fiscal cliff” in
  • 82. 82the U.S, financial turbulence in the euro area, and sell-off of risky assets in the globalfinancial markets.Table 8.1: GDP Growth in Selected CountriesCountry2007 2008 2009 2010 2011 2012 2013PercentWorld 5.4 2.8 -0.6 5.2 4.0 3.2 3.3United States 1.9 –0.3 –3.1 2.4 1.8 2.1 1.9United Kingdom 3.6 –1.0 –4.0 1.8 0.9 0.2 0.7Japan 2.2 –1.0 –5.5 4.7 –0.6 2.0 1.6Germany 3.4 0.8 –5.1 4.0 3.1 0.9 0.6France 2.3 –0.1 –3.1 1.7 1.7 0.0 –0.1Greece 3.5 –0.2 –3.1 –4.9 –7.1 –6.4 –4.2Ireland 5.4 –2.1 –5.5 –0.8 1.4 0.9 1.1Portugal 2.4 0.0 –2.9 1.9 –1.6 –3.2 –2.3Spain 3.5 0.9 –3.7 –0.3 0.4 –1.4 –1.6China 14.2 9.6 9.2 10.4 9.3 7.8 8.0India 10.1 6.2 5.0 11.2 7.7 4.0 5.7Brazil 6.1 5.2 –0.3 7.5 2.7 0.9 3.0Mexico 3.2 1.2 –6.0 5.3 3.9 3.9 3.4Egypt 7.1 7.2 4.7 5.1 1.8 2.2 2.0Morocco 2.7 5.6 4.8 3.6 5.0 3.0 4.5South Africa 5.5 3.6 –1.5 3.1 3.5 2.5 2.8Nigeria 7.0 6.0 7.0 8.0 7.4 6.3 7.2Source: World Economic Outlook Database, April 2013The slow pace of recovery of the global economy continued in into 2012, owing largely to theinability of policies in the advanced economies to rebuild confidence. Economic conditions inseveral economies, including the developed nations, however began to improve, with effectfrom early 2013. This is due to the success recorded in dealing with the threats of Eurobreakup and fiscal contraction in the US, associated with the fiscal cliff. The emerging anddeveloping economies, notably China, have continued to champion the global post-crisisrecovery, through relatively buoyant and vigorous economic activities, arising from stronginternal demand.8.1.2 TradeThe slow pace of global trade was closely associated with the global financial recessionwitnessed with effect from 2009. The world trade volume contracted significantly by 11percent in 2009. The trend however recovered to a growth rate of 12.5 percent in 2010 andshowed down to 6 percent in 2011 and 2.5 percent in 2012; but projected to marginallyimprove to 3.6 percent in 2013. The slow pace of growth after the recovery in 2010 was
  • 83. 83attributed largely to the poor performance of the developed economies, that were most hitby the economic recession, thereby stifling consumption demand (see Tables 8.2 and 8.3).Table 8.2: Volume of Exports of Goods and Services in Selected Countries ( percentchange)2007 2008 2009 2010 2011 2012 2013Advanced EconomiesUnited States 9.3 6.1 -9.1 11.1 6.7 4.3 4.3United Kingdom -2.5 1.2 -8.2 6.4 4.4 -0.8 2.4Japan 8.7 1.4 -24.2 24.3 -0.1 2.7 4.2Euro AreaGermany 8.0 2.8 -12.8 13.7 7.8 3.9 3.1France 2.4 -0.3 -12.1 9.6 5.3 2.3 1.2Greece 16.7 10.6 -23.8 -0.7 4.5 -7.9 -0.1Ireland 8.4 -1.1 -3.8 6.2 5.1 2.8 3.5Portugal 12.1 3.0 -12.1 0.3 8.9 -3.0 2.6Spain 6.7 6.7 -10.0 11.3 7.6 2.4 3.5Developing AsiaChina 19.8 8.4 -10.3 27.8 8.8 5.0 7.2India 18.0 9.8 -0.3 19.5 12.9 3.7 6.3Latin America and the CaribbeanBrazil 5.5 -2.5 -10.8 9.5 2.9 2.0 6.6Mexico 5.7 0.5 -13.5 21.7 6.7 4.9 6.0Middle East and North AfricaEgypt 12.1 15.1 -5.5 -3.1 -5.4 -7.8 4.6Morocco 6.5 -3.8 -4.7 19.3 4.2 8.9 13.8Sub-Saharan AfricaSouth Africa 6.6 1.8 -19.5 4.5 5.6 3.1 5.1Nigeria 2.9 -4.2 4.1 6.7 -8.5 6.1 3.9Source: IMF, World Economic Outlook Database, April 2013Table 8.3: Volume of Imports of Goods and Services ( percent change)2007 2008 2009 2010 2011 2012 2013Advanced EconomiesUnited States 2.4 -2.7 -13.5 12.5 4.8 3.5 3.6United Kingdom -1.7 -1.8 -11.0 8.0 0.5 1.6 1.0Japan 2.3 0.3 -15.7 11.2 6.3 5.7 4.3Euro AreaGermany 5.4 3.4 -8.0 11.1 7.4 2.8 3.6France 5.5 0.9 -9.6 8.9 4.9 1.2 1.6Greece 25.1 10.9 -24.5 -11.6 -3.6 -18.9 -8.8Ireland 7.9 -3.0 -9.7 3.6 -0.3 1.0 2.4
  • 84. 84Portugal 7.7 5.1 -12.4 -4.4 -4.4 -12.3 -2.1Spain 10.2 8.0 -17.2 9.2 -0.9 -5.7 -2.8Developing AsiaChina 13.9 3.7 4.2 20.1 9.5 8.8 8.8India 18.2 11.0 7.3 14.0 11.0 1.3 3.3Latin America and the CaribbeanBrazil 22.0 17.6 -17.5 38.2 8.9 2.8 5.3Mexico 7.1 2.9 -18.5 20.7 6.8 4.4 5.1Middle East and North AfricaEgypt 9.7 23.6 -0.3 -5.2 -2.9 3.4 2.6Morocco 16.0 9.8 2.4 -0.5 7.2 6.0Sub-Saharan AfricaSouth Africa 9.0 1.5 -17.4 9.6 9.7 4.7 2.3Nigeria 18.9 12.4 1.1 17.4 5.6 6.7 3.2Source: IMF, World Economic Outlook Database, April 2013Given the importance of trade to the Nigerian economy, the decline in global trade had someeffects on the economy through demand for the Nigerian crude oil and the ultimate effects onfiscal revenues.8.1.3 Capital FlowsThere was a significant drop and volatility in global financial flows during the period underreview (see Table 8.4). Persisting downside risks to the global economy were a major factorthat moderated global capital flows. Specifically, these moderating factors include: fear thatthe Euro zone crisis might spread to other countries; weak recovery in the US real estatemarket; limited success in fiscal consolidation in most developed countries and the attendantsovereign debt crisis; increasing oil and other commodity prices; and boom and bust businesscycles in emerging markets.Table 8.4: Net Private Financial Flows (Billions US$)2007 2008 2009 2010 2011 2012 2013Advanced Economies 691.0 278.8 320.9 600.0 495.3 144.9 336.3Developing Asia 197.1 68.2 206.2 409.0 311.9 14.4 193.3Latin America and the Caribbean 85.8 84.9 61.9 128.9 200.0 136.3 126.0Middle East and North Africa 77.2 44.4 71.9 19.0 -43.8 -35.2 -10.1Sub-Saharan Africa 16.8 22.3 13.5 -14.7 -1.7 20.4 21.7Source: IMF, World Economic Outlook Database, April 2013The emerging markets performed well, despite the poor performance globally, in 2010. Therelatively poor capital flows into the Sub-Sahara African (SSA) region, compared to the otherdeveloping regions of the world, is the result of the relatively underdeveloped financialmarkets in the region. Indeed, Nigeria has been a top receiver of capital flows in the SSAregion, topping the chart of foreign direct investment inflows in 2011. This demonstrates
  • 85. 85progress in the development of the country’s capital market. As the credit risks in the Euroarea began to subside, especially from 2012, global capital flows are beginning to pick up,especially in the developing and emerging economies.8.1.4 Oil price developmentsOil exporting economies, including Nigeria, experienced good fortune, during the reviewperiod, with the rising price of crude oil at the international market (Table 8.5). This wasattributed to excess demand for crude oil, occasioned by supply constraints and speculativetrading. For example, crude petroleum from Nigeria was sold at monthly average prices ofUS$81.07, US$114.15 and US$113.68 per barrel in 2010, 2011 and 2012, respectively, after thereported drop in crude oil price to US$63.25 per barrel in 2009, following the globalrecession.Table 8.5: Prices of Selected Crude Oil Products2007 2008 2009 2010 2011 2012Algeria SaharanBlend74.66 98.96 62.35 80.35 112.92 111.52Angola Girassol 70.88 95.64 61.81 79.53 111.57 112.24Iraq Basra Light 66.40 92.08 60.50 76.79 106.17 108.00Kuwait Export 66.35 91.16 60.68 76.32 105.63 108.98Libya Ess Sidar 71.41 96.65 61.45 79.13 111.90 111.88Nigeria BonnyLight75.14 100.6 63.25 81.07 114.15 113.68Qatar Marine 69.30 94.86 62.38 78.18 106.53 109.31Saudi Arab Light 68.75 95.16 61.38 77.82 107.82 110.27UAE Murban 72.87 99.03 63.78 79.94 109.77 111.80Venezuela Merey 61.80 86.73 55.90 69.70 97.94 100.11OPEC Reference 69.08 94.45 61.06 77.45 107.46 109.50OPEC, 20128.1.5 InflationAs the global economy recovered from the crisis and demand strengthens, prices of both oiland non-oil commodities have increased greatly. While inflationary pressure was low in theadvanced economies, it remains a major risk in the emerging markets and developingeconomies. In this regard, the global inflation rate rose from 3.7 percent in 2010 to 4.9percent in 2011 and declined thereafter to 3.9 in 2012. It is equally projected to furtherdecline to 3.7 percent in 2013. The same trend was maintained for advanced economies,emerging markets and developing economies as well as the SSA economies with inflation rateaveraging 2.35, 6.55 and 9.2 percent respectively (see table 8.6).
  • 86. 86Table 8.6: Global Inflation Trends2007 2008 2009 2010 2011 2012 2013World 4.0 6.0 2.4 3.7 4.9 3.9 3.7Advanced Economies 2.2 3.4 0.1 1.5 2.7 2.0 1.7United States 2.9 3.8 –0.3 1.6 3.1 2.1 1.8United Kingdom 2.3 3.6 2.1 3.3 4.5 2.8 2.7Japan 0.1 1.4 –1.3 –0.7 –0.3 0.0 0.1Euro Area 2.1 3.3 0.3 1.6 2.7 2.5 1.7Germany 2.3 2.8 0.2 1.2 2.5 2.1 1.6France 1.5 2.8 0.1 1.5 2.1 1.0 1.6Greece 3.0 4.2 1.3 4.7 3.1 1.0 –0.8Ireland 2.9 3.1 –1.7 –1.6 1.2 1.9 1.3Portugal 2.4 2.7 –0.9 1.4 3.6 2.8 0.7Spain 2.8 4.1 –0.2 2.0 3.1 2.4 1.9Emerging Market and DevelopingEconomiesDeveloping Asia 5.4 7.3 2.6 5.6 6.4 4.5 5.0China 4.8 5.9 –0.7 3.3 5.4 2.6 3.0India 6.4 8.3 10.9 12.0 8.9 9.3 10.8Latin America and the Caribbean 5.4 7.9 5.9 6.0 6.6 6.0 6.1Brazil 3.6 5.7 4.9 5.0 6.6 5.4 6.1Mexico 4.0 5.1 5.3 4.2 3.4 4.1 3.7Middle East and North Africa 10.3 12.4 7.3 6.9 9.7 10.7 9.4Egypt 11.0 11.7 16.2 11.7 11.1 8.6 8.2Morocco 2.0 3.9 1.0 1.0 0.9 1.3 2.5Sub-Saharan Africa 6.4 12.9 9.4 7.4 9.3 9.1 7.2South Africa 7.1 11.5 7.1 4.3 5.0 5.7 5.8Nigeria 5.4 11.6 12.5 13.7 10.8 12.2 10.7Source: World Economic Outlook Database, April 20138.1.5 UnemploymentThe global unemployment rate maintained an upward trend during the period. The trend wasthe same in several countries. In particular, the unemployment rate for the AdvancedEconomies averaged 8 percent, during the period. The unemployment rate for the Euro Zoneand SSA was in the double digit bracket of 11 percent and 24 percent, respectively, ashighlighted in Table 8.7.
  • 87. 87Table 8.7: Unemployment Trends, 2007 – 2013 ( percent)2007 2008 2009 2010 2011 2012 2013Advanced Economies 5.46 5.83 8.01 8.27 7.93 8.03 8.08United States 4.6 5.8 9.3 9.6 9.0 8.2 8.1United Kingdom 5.4 5.6 7.5 7.9 8.0 8.1 8.1Japan 13.1 12.7 12.9 12.5 12.9 12.9 12.9Euro Area 7.6 7.66 9.6 10.1 10.2 11.2 11.5Germany 8.8 7.6 7.7 7.1 6.0 5.2 5.3France 8.4 7.8 9.5 9.7 9.6 10.1 10.5Greece 8.3 7.7 9.4 12.5 17.3 23.8 25.4Ireland 4.6 6.3 11.8 13.6 14.4 14.8 14.4Portugal 8.0 7.6 9.5 10.8 12.7 15.5 16.0Spain 8.3 11.3 18.0 20.1 21.7 24.9 25.1Developing AsiaChina 4.0 4.2 4.3 4.1 4.1 4.1 4.1India n/a n/a n/a n/a n/a n/a n/aLatin America and the CaribbeanBrazil 9.3 7.9 8.1 6.7 5.9 6.0 6.5Mexico 3.7 4.0 5.5 5.4 5.2 4.8 4.8Middle East and North AfricaEgypt 9.2 8.7 9.4 9.2 12.1 12.7 13.5Morocco 9.8 9.6 9.1 9.1 8.9 8.8 8.7Sub-Saharan AfricaSouth Africa 22.2 22.9 23.9 24.0 23.9 24.4 24.7Nigeria 12.7 14.9 19.7 21.1 23.9 27.4 n/aSource: World Economic Outlook Database, April 20138.1.6 Exchange RateThe major world currencies responded differently to the global economic turbulence duringthe review period. The euro depreciated against the U.S. dollar by 10.41 percent in 2010while it appreciated by 4.71 percent in 2011. The euro depreciated by 8.16 percent in 2012.The exchange rate of the U.S. dollar depreciated against the index of the major worldcurrencies in 2011 while it appreciated in 2012. The yen on the other hand appreciatedagainst the U.S. dollar by 06.18 percent in 2010 and 9.21 percent in 2011 before depreciatingby 0.09 percent in 2012.
  • 88. 888.2 Domestic Developments8.2.1 National AccountsOverall, economic performance under the present Administration was impressive during 2010– 2012. The nominal GDP grew from $166.53 billion in 2009 to $243.99 billion and $257.42billion in 2011 and 2012 respectively. This allowed Nigeria’s global GDP ranking to improvefrom 44that the beginning of 2010 to 36thin 2012. This shows an annual average real GDPgrowth rate of 7.01 percent during the 2010 – 2012 and 6.56 percent for quarter one 2013.This is slightly less than the 7.49 percent growth rate projected in the TA, for the first twoyears of the current Administration (Figure 8.2). A higher growth rate of 7.43 percent wasreported in 2011, while a much lower growth rate of 6.58 percent was recorded in 2012. Theslight drop in the growth rate can be attributed to a combination of factors, such as thenational strike in January, higher prices of petrol due to the partial subsidy removal, theflooding which affected may parts of the country in the second half of 2012, growinginsurgence in some of the Northern States, and increasing crude oil theft and oil pipelinevandalisation.Figure 8.2: Real GDP Growth Rate: Target, Actual and Performance Gap, 2011-2012Source: NPC, Transformation Agenda, 2011 and NBS, GDP Statistics, unpublishedThe growth was encouraging, given that growth rates in emerging markets and developingeconomies were lower in 2011 and 2012 at 6.4 percent and 5.1 percent respectively (Figure8.3). This further demonstrates the resilience of the Nigerian economy to global boom-bustcycles. A more prudent fiscal stance since the mid-2011 has restored countercyclical fiscalpolicy in the country and helped boost investor confidence. Two-Years AverageTarget1st Two Years AveragePerformancePercentage Points Gap7.497.010.48PercentSeries1
  • 89. 89Figure 8.3: Output Growth by Selected Economies, 2011-2012Source: IMF, World Economic Outlook, 2012 and NBS, GDP Statistics, 20128.2.2 Sources of GrowthThe growth of the economy was largely driven by the non-oil sector in 2011 and 2012, withagriculture, wholesale and retail trade, and telecommunications as the key sub sectorsdriving growth. These sub-sectors contributed an average of 27.64, 28.4 and 24.38 percent,respectively, to the real GDP growth of the country in 2011-2012 (Figure 8.4).Figure 8.4: Composition of the Overall Real GDP Growth RateA comparison of the sectoral growth rates with their respective targets in the TransformationAgenda shows that eight broad sectors (solid minerals, building and construction, real estate,7.436.586.405.105.304.804. 2012PercentNigeria Emerging Markets & Developing Economies Sub-Saharan Africa World0.06 0.29 0.38 0.63 1.49 2.01 2.25 2.59 2.65 3.61 4.4824.3827.64 28.4051015202530PercentComposition of the Overall Real GDP Growth rate
  • 90. 90financial institution and insurance, transport, public administration, education and otherservices) exceeded their targets. All other sectors including the three key growth drivers ofagriculture, wholesale and retail trade, and telecommunications had real GDP growth ratesbelow the targets under the Transformation Agenda as depicted in Table 8.8.Table 8.8: Sectoral Composition of GDP Growth: Baseline, Targets and ActualPerformance, 2009-2012ACTIVITY SECTORBaseline1st TwoYearsAverageTarget(a)1st TwoYearsAveragePerformance (b)PercentagePointDifference (a-b)Actual Performance20102011-20122011-2012 2011 20122013Q1percent percentOverall GDP 7.98 7.49 7.01 0.48 7.43 6.58 6.56Oil and Gas 5.25 -0.27 -0.39 0.12 0.14 -0.91 -0.54Non-oil 8.51 8.89 8.34 0.55 8.80 7.88 7.89Agriculture 5.82 5.63 4.81 0.82 5.64 3.97 4.14Solid Minerals 12.08 11.49 12.51 -1.02 12.50 12.52 12.0Utilities 3.28 3.40 3.35 0.05 3.20 3.51 4.44Manufacturing 7.57 7.61 7.53 0.08 7.50 7.55 8.41Building and Construction 11.85 12.27 12.34 -0.07 12.11 12.58 15.66Real Estate 10.75 10.42 10.48 -0.06 10.55 10.41 10.06Wholesale and RetailTrade11.22 11.17 10.48 0.69 11.34 9.618.22Financial Institutions andInsurance3.94 3.98 4.01 -0.03 3.98 4.053.61Transport 6.71 6.69 6.79 -0.10 6.79 6.79 6.14Telecommunications andPostal Services34.38 33.37 33.20 0.17 34.58 31.8324.53Public Administration 4.20 4.08 4.14 -0.06 4.08 4.20 3.47Health 9.96 9.61 9.35 0.26 9.54 9.16 8.44Education 9.81 9.45 9.77 -0.32 9.69 9.85 9.12Others Services 10.10 10.20 10.39 -0.19 10.32 10.47 10.44Agriculture 5.82 5.63 4.81 0.82 5.64 3.97 4.14Industry 5.95 2.69 2.62 0.07 2.82 2.42 2.77Services 12.40 13.14 12.76 0.38 13.10 12.42 10.53Primary Production 5.66 4.06 3.38 0.68 4.10 2.66 2.73Secondary Production 8.92 9.14 9.11 0.03 8.99 9.23 8.41Tertiary Production 11.55 12.34 11.98 0.36 12.25 11.72 10.53
  • 91. 91Source: NPC and NBSThe composition of the overall growth shows that exports of goods and non-factor servicescontributed an average of 139.73 percent to the overall real GDP growth rate during thereview period (Figure 8.5). This implies that the contraction recorded in domestic demand at1990 constant purchasers’ value, comprising final consumption expenditure and gross fixedcapital formation, resulted in slowing the pace of the economy in 2011-2012.Figure 8.5: Composition of GDP by expenditure components at 1990 Purchasers’ Values, 2011-2012Source: NBSDetails on fixed capital formation show that gross fixed capital formation dropped by 2.61percent in nominal terms from N4.01 trillion (US$26.68 billion) in 2010 to N3.91 trillion(US$25.41 billion) in 2011. This indicates that the investment target of N6.42 trillion perannum required to grow the economy by 7.49 percent per annum was not met (Figure 8.5).This is not a welcome trend, as this level of investment remains too low to address the wideinfrastructural deficit in the country, which is necessary to drive the envisaged growthmomentum in the Transformation Agenda. The deficit is partly attributed to the weak linkbetween the capital expenditure provision of N1.63 trillion per annum under theTransformation Agenda and the actual capital budget of N0.78 trillion per annum, indicating ashortfall of N0.85 trillion per annum in 2011-2012 (Figure 8.6). The ongoing effort torestructure the budget and ensure that capital expenditure is fully implemented should beadvanced.(136.38)(121.07)(46.30)(8.77)0.02139.73(200.00)(150.00)(100.00)(50.00)-50.00100.00150.00200.00LESS IMPORTS OFGOODS ANDSERVICESPRIVATE FINALCONSUMPTIONEXPENDITUREGROSS FIXEDCAPITALFORMATIONGOVERNMENTFINALCONSUMPTIONEXPENDITUREINCREASE INSTOCKSEXPORTS OFGOODS ANDSERVICESPercentComposition of economic Growth
  • 92. 92Figure 8.6: Gross Investment and FGN Capital Budget: Actual Versus Target, 2011-2012Source: OAGF and NBS8.2.3 Job CreationThere has been increasing unemployment rate in the country over the years. The currentadministration views this phenomenon, especially that of the youths, with great concern.Thus job creation has been identified as a major pillar of the Transformation Agenda. Theprospects of generating more jobs in the Nigerian economy depend largely on addressing arange of sectoral issues, particularly in labour intensive sectors such as agriculture,manufacturing, housing, building and construction and sports.The increase in unemployment can be largely attributed to three factors. First, there hasbeen phenomenal growth in the number of active population as well as the labour force,indicating that job creation has not kept pace with the growth in the labour force. Second,the methodology adopted in the computation of unemployment in Nigeria is country specificin which people who worked for less than 40 hours in the past week are consideredunemployed. The issue therefore, might best be interpreted as under-employment, ratherthan unemployment. Third, given the nature of the economy, a large number of Nigerians areemployed in the informal sector and are sometimes not captured in the employment surveys.To further underscore the importance placed addressing the issue of unemployment in thecountry, this Administration has commenced the quarterly assessment and tracking of jobscreated. In this regard, the third quarter 2012 assessment survey has been concluded, whilethat of fourth quarter is in progress. The process would be sustained in 2013 and beyond.
  • 93. 93As part of efforts to enhance job creation, the current Administration in its early daysembarked on a number of initiatives to address the situation. The Youth Enterprise withInnovation in Nigeria (YouWiN) project was launched in October 2011 to provide jobs forbetween 80,000 and 110,000 currently unemployed Nigerian youths, over a period of threeyears. This initiative is not just to create jobs for Nigerian youths but to create job creators.The programme is collaboration among the FMF, the Ministry of Communication Technology(MCT), and the Federal Ministry of among Youth Development to launch an annual BusinessPlan Competition (BPC) for aspiring young entrepreneurs in Nigeria, in line with the FederalGovernment’s drive to create more jobs for Nigerians. Over 6,000 youths were trained inbusiness plan development with a further 1,200 young entrepreneurs selected and beingsupported with grants of up to N10,000,000 (ten million naira) each.Box 8.1: YouWIN Program Phase 1Source: FMFSimilarly, in January 2012, the Public Works and Women/Youth Employment (PW/WYE)project was launched by the President. The aim of the project is to create immediate short-term employment opportunities for 185,000 women and youths, through labour intensivepublic work. This initiative is a component of the Subsidy Reinvestment and EmpowermentProgramme (SURE-P) which was set up to oversee and ensure the effective and timelyimplementation of the projects to be funded with the savings accruing to the FederalGovernment from the fuel subsidy removal. By February 2013, there were 119,680beneficiaries in the scheme, across the 774 LGAs, with a further 70,363 graduates earmarkedfor the Graduate Internship Scheme. The breakdown is as detailed in Box 8.2.6,000 youth were trained in business plan development and smallbusiness management.1,200 young entrepreneurs selected and being supported with grant of upto N10 million eachFurther training and mentoringN4.2 billion out of the total award of N9.3 billion disbursed to winners intwo of four tranches in the first cycle of the program.
  • 94. 94Box 8.2: Community Service, Women & Youths Employment (CSWYE) Scheme of SURE-PCommunity Service Scheme Graduate Internship SchemeOutline of the Community ServiceScheme (CSS):- Designed to engage unskilled youth inlabour intensive activities.- 119,680 youth engaged by end ofFebruary 2013Outline of the Graduate InternshipScheme (GIS):Scheme designed to support buildingthe skills of graduates to enhancetheir employability70,363 graduate interns applied(February 11, 2013):- 50,231 Male graduates- 20,130 Female graduates- 269 Disabled graduatesSource: FMFYouWIN created a total of 6,316 jobs between July and November 2012 alone. Thedistribution by sector as well as by geopolitical zones is as detailed in Figure 8.7.Figure 8.7: Summary of Jobs created through the YouWIN programmeNumber of Jobs created per sectorSource: FMF0 4000 8000AgricultureICT & MediaManufacturingPerofessional ServicesRetailOthersTotal163797087645535120278316Number of Jobs created per GeopoliticalzoneSouthWest,1493NorthCentral,1188SouthSouth,945SouthEast,1019NorthWest,863NorthEast, 808Scheme handed over to theMinistry of Labour
  • 95. 95The introduction of the Agricultural Transformation Action (ATA) Plan by Government isintended to provide a comprehensive strategy to increase domestic food production, reducedependence on food imports and expand value addition to locally produced agriculturalproducts. This initiative is expected to add 20 million tons of food to domestic supply andcreate 3.5 million jobs along the agricultural value chains. Already, 2.2 million jobs have beencreated in the first year of the ATA in the areas of Oil Palm, Sorghum, Cassava, Cotton,Cocoa, Rice, GES Fertilizer and Maize. The launch of the Youth Employment in AgricultureProgramme (YEAP) is also expected to create 740,000 young commercial farmers andentrepreneurs with relevant added on effect on job creation for Nigerians.As indicated above, youth unemployment constitutes a major social problem. As part of theefforts to address this, the Federal Government is partnering with the States and variousorganisations through its Entrepreneurship Development Centres (EDC). The centres areexpected to provide training for 75,000 persons consisting 30,000 graduate trainees and45,000 high school leavers. As at end-June, 2012, a total of 29,323 participants made up of4,113 graduates and 25,210 entrepreneurs had been trained. By March 2013, these effortswere boosted with the training of 41,441 entrepreneurs and the creation of 10,895 jobs. Inaddition, 106,933 entrepreneurs have been counselled and 1,034 trainees given access tofinance. This success has provided further impetus to opening EDCs in all the six geo-politicalzones. The CBN has three (3) existing Entrepreneurship Development Centers (EDCs) inOnitsha, Lagos and Kano with satellite locations in seven (7) states and Abuja. The NorthCentral Zone of the Entrepreneurship Development Centre (EDC) located in Markurdi wasinaugurated on March 12, 2013.In addition, a National Enterprise Development Programme (NEDEP) is being developed underthe coordination of the Federal Ministry of Industry, Trade and Investment. The programmeaims to create 3.5 million direct and 5 million indirect jobs, between 2013 and 2015, byfocusing on technical/business and entrepreneurship skills acquisition, access to finance,improving market access and improving business environment for MSMEs. The One LocalGovernment, One Product programme under the NEDEP framework is the extension of thepilot projects that were performed on 6 products in Kano and Niger States working with theJapanese Government. It aims to identify scalable products in each local government andthen provide the necessary BDS Entrepreneurship Training and assistance with access tofinance. SMEDAN has been working in conjunction with the states to create a mapping ofscalable products in each local government in the States.8.3 Fiscal developmentOverall, fiscal performance was relatively impressive during the period. In particular, thefiscal policy stance of the Government has been focused at ensuring economic growth,maintaining macroeconomic stability and job creation. The strategy adopted was aimed atensuring fiscal consolidation and channeling budgetary allocations to priority sectors,specifically critical infrastructure, with a view to broadening the productive base of theeconomy. Equally, sustained reduction in the budget deficit to GDP ratio from 3.25 percent in
  • 96. 962010 to 3.14 percent and 2.81 percent in 2011 and 2012, respectively, was achieved. Fiscalreforms broadly targeted boosting revenue receipts, particularly from non-oil sources,through diversification, as well as identifying and plugging revenue leakages, thus ensuring afiscal deficit of less than 3 percent of GDP, in line with the provision of the FiscalResponsibility Act.The revenue performance has been impressive over the years. This was largely driven by oilrevenue, which increased from N5,396.09 billion in 2010 to N8,848.62 billion in 2011,representing a 63.98 percent increase. This reflected improvements in the oil production andmarket conditions, as well as relative peace in the Niger Delta region, following thesuccessful implementation of the Presidential Amnesty Programme. Equally, gross, federallycollected revenue, increased from N6,362.56 billion in 2010 to N10, 059.59 billion in 2012.Federally collected revenue amounted to N3,462.8 billion in the first quarter of 2013.Similarly, efforts are being made to shore up the capital expenditure component of thebudget, to facilitate the actualization of the objectives of the Transformation Agenda and theNV20: 2020. In this regard, capital expenditure rose from 25.6 percent in 2011 to 28.5 percentin 2012.Table 8.9 Federally Collected Revenue Trend 2009-2012Items ActualPerformance2009 (N’B)ActualPerformance2010 (N’B)ActualPerformance2011 (N’B)ActualPerformance2012 (N’B)ActualPerformance 2013Q1 (N’B)Variance2012 &2011(N’B)perceVarian20122011FederallyCollectedRevenue(Gross)4, 525.89 6, 925.42 10, 637.13 10, 059.59 3,462.80 (577.54) (5.43)OilReceipts3, 191.94 5, 396.09 8, 848.62 8, 025.95 3,059.66 (822.67) (9.30)Non-OilReceipts1, 333.95 1, 529.33 1, 788.51 2, 231.62 403.14 443.11 24.78Source: OAGF
  • 97. 97Figure 8.8: Structure of Government Revenue in 2012Source: OAGFThe Federal Government total actual budgetary expenditure grew slightly by an average rateof 1.15 percent annually to N4,299.16 billion in 2011 and N4,130.58 billion in 2012 fromN4,047.06 billion in 2010. As at March 2013, the actual budgetary expenditure grew by 11.41percent to N963.77 billion. Recurrent expenditure, accounting for an average of 80.30percent of total expenditure per annum, rose by 3.52 percent to N3,380.61 billion in 2011 andN3,386.06 billion in 2012. Total recurrent expenditure amounted to N935.31 billion during thefirst quarter of 2013. The slow pace of growth in recurrent expenditure at 0.16 percent in2012 as against 6.87 percent growth recorded in 2011 was largely attributed to the lowerspending on petroleum subsidy in 2012 following the price reform in the downstreampetroleum sub-sector. Capital expenditure grew by 3.92 percent to N918.55 billion in 2011,before contracting significantly by 18.95 percent, to N744.52 billion in 2012. Capitalexpenditure increased by 35.72 percent to N210.89 billion in the first quarter of 2013. Thisreveals that the plan to raise the ratio of capital to total expenditure to an average of 27.06percent was not achieved, as only 21.37 percent and 18.03 percent in 2011 and 2012respectively was actually spent on capital projects. This was as a result of the significantcontraction in capital expenditure by an annual average of 7.51 percent as against theanticipated expansion of 23.3 percent in 2011-2012.With the total expenditure continuing to outpace retained revenue, the FederalGovernment’s financial position registered overall fiscal deficits of 3.1 percent, 2.41 percentand 0.65 percent of GDP in 2011, 2012 and the first quarter of 2013 respectively as against5.02 percent in 2010 (Table 8.10). The reduction in the fiscal deficit position of the FederalGovernment during the review period shows that the implementation of fiscal consolidationpolicy was effective, though this was achieved more at the expense of capital projects.
  • 98. 98Table 8.10: Performance of the Federal Government’s Budgetary Retained Revenue andExpenditure Vs TA Targets, 2010 – First Quarter of 2013Indicators Actual Total(2011-2012)2010(Baseline)2011 2012 2013 Q1Actual TATargetRetained Revenue(N’ Billion)( percent of GDP)( percent annual change)2,341.01(6.89percent)(-5.58percent)3,140.64(8.40percent)(34.16percent)3,154.86(7.78percent)(0.45percent)900.97(9.33 percent)(15.61percent)6,295.48(8.09 percent)(17.31percent)6,877.06(8.64percent)(20.57percent)Recurrent Expenditure (N’Billion)( percent of totalexpenditure)( percent annual change)3,163.19(78.16percent)(48.07percent)3,380.6178.63percent)(6.87percent)3,386.06(81.98percent)(0.16percent)935.31(78.12percent)(31.80percent)6,766.67(80.30percent)(3.52 percent)6,693.32(72.94percent)(3.05percent)Capital Expenditure (N’Billion)( percent of totalexpenditure)( percent annual change)883.87(21.84percent)(-23.33percent)918.55(21.37percent)(3.92percent)744.52(18.02percent)(-18.95percent)210.89(21.88percent)(35.72percent)1,663.07(19.70percent)(-7.51percent)2,487.89(27.06percent)(23.30percent)Total Expenditure (N’Billion)( percent of GDP)( percent annual change)4,047.06(11.91percent)(23.04percent)4,299.16(11.49percent)(6.23percent)4,130.58(10.19percent)(-3.92percent)963.77(9.98 percent)(11.41percent)8,429.74(10.84percent)(1.15 percent)9,181.21(11.51percent)(7.78percent)Overall Fiscal Deficit (N’Billion)( percent of GDP)( percent annual change)-1,706.05(-5.02percent)(110.65percent)-1,158.52(-3.10percent)(-32.09percent)-975.72(-2.41percent)(-15.75percent)-62.80(-0.65)(-26.72percent)-2,134.24(-2.75percent)(-23.94percent)-2,304.15(-2.90percent)(-17.13percent)Note: Capital Expenditure was reported based on the period spending was made.
  • 99. 99Source: OAGF and NPC ComputationFiscal consolidation was achieved through the rationalization of recurrent expenditure by:extending biometric verification to more MDAs (IPPIS); partial implementation of therationalization of government agencies e.g. the number of Permanent Secretaries in theoffice of the Head of the Civil Service of the Federation was reduced from 7 to 3; focus oncompleting on-going capital projects; and drastically reducing administrative- type capitalexpenditure from the budget to create space for more impactful projects.As part of the efforts towards improving the efficiency of the Federal Government’s financialmanagement, the current Administration introduced the Governments Integrated FinancialManagement and Information System (GIFMIS) in April 2012. This is aimed at strengthening themanagement of the Integrated Payroll and Personnel Information System (IPPIS) at theFederal level. It has also enhanced efficient personnel cost planning and budgeting, therebymaking it relatively easy to verify the staff strength of Government. Similarly, with theintroduction of the Treasury Single Accounting in January 2012, a unified structure ofgovernment bank accounts that gives a consolidated view of the cash position has beeninstalled in 92 Federal MDAs. This has led to the reversal from an average overdraft positionof N102 billion in 2011 to a credit of N4.6 billion in 2012. Accordingly, the GIFMIS, which isnow operational in 113 Federal MDAs, helps the government to mop up unused funds, therebyreducing the need for unnecessary government borrowing. It also promotes accurate andtimely reporting on budget execution, while government funds are centrally controlled.8.4 Monetary Sector DevelopmentsDevelopments in the monetary sector remained stable during the review period. In particular,the monetary authorities implemented more active and predictable interest rate andexchange rate policies during the period. Accommodating monetary policy was largelyavoided, while the monetary policy operating target shifted to the inter-bank rate, with themonetary policy rate (MPR), as the indicative rate. The MPR was situated within an interestrate corridor of +/- 200 basis points, at inception, which was reviewed upward from time totime by the Monetary Policy Committee (MPC) in line with prevailing global and domesticconditions. The current MPR remains high at 12.0 percent which is slightly lower than thetarget of 12.5 percent for 2012. Other monetary policy instruments that were steadily used,include liquidity management instruments and measures, such as Open Market Operations(OMO), complemented by reserve requirements and discount window operations. Thehighlights of the major decisions taken during the period are in Table 8.11.
  • 100. 100Table 8.11: Major MPC Decisions, 2011-2012Period MPR MPRCorridorCRR LR FX RateMid-PointFX Band2011May 8.00percent+/- 200 Increased from2.0 percent to4.0 percent30percent150/US$ +/- 3.0July 8.75percent+/- 200 4.0 percent 30percent150/US$ +/- 3.0September 9.25percent+/- 200 4.0 percent 30percent150/US$ +/- 3.0October 12.00percent+/- 200 Increased from4.0 percentto8.0 percent30percent150/US$ +/- 3.0November 12.00percent+/- 200 8.0 percent 30percent155/US$ +/- 3.02012January 12.00percent+/- 200 8.0 percent 30.0percent155/US$ +/- 3.0March 12.00percent+/- 200 8.0 percent 30.0percent155/US$ +/- 3.0May 12.00percent+/- 200 8.0 percent 30.0percent155/US$ +/- 3.0July 12.00percent+/- 200 Increased from8.0 to 12.0percent30.0percent155/US$ +/- 3.0September 12.00percent+/- 200 12.0 percent 30.0percent155/US$ +/- 3.0November 12.00percent+/- 200 12.0 percent 30.0percent155/US$ +/- 3.02013January 12.00percent+/- 200 12.0 percent 30.0perc155/US$ +/- 3.0
  • 101. 101/1. The MPC Meeting of May 2013 had not taken place as at the time the Report waspreparedSource: CBNThe various policy measures impacted positively on the growth of money. The growth ofnarrow money (M1) and broad money (M2), which were targeted to ensure that they did notexceed 23.07 percent and 28 percent, respectively, over the review period, was achieved. Forinstance, growth in M1 averaged 13.2 percent, which was almost 10 percent lower thantarget. Similarly, the growth in M2 averaged 13.93 percent, which was almost 14.07 percentlower than target. The slowdown in the growth of money supply was achieved, to ensure thatmoney supply grew proportionately with the absorptive capacity of the economy in order tocurb inflationary pressure.8.4.1 Consumer Price Index (CPI)In pursuit of sound monetary and price stability, effort was made to ensure that liquidity inthe system was consistent with overall policy goals. Monetary policy during the period underreview has been quite transparent and generally tight. Although the single digit inflationtarget is yet to be sustained, a great deal of success has been recorded over the years, as themonetary authorities have been able to keep inflation within the range of 8-13 percent,during the period May 2011- May 2013. Headline Inflation (year-on-year) which was 12.4percent in May 2011, decelerated to 12.0 percent by December 2012. As at March and April2013, Headline Inflation (year-on-year) stood at 8.6 and 9.1 percent respectively.entMarch 12.00percent+/- 200 12.0 percent 30.0percent155/US$ +/- 3.0May/1 n/a n/a n/a n/a n/a n/a
  • 102. 102Figure 8.9: Inflation RateSource: CBN8.5 Financial Sector DevelopmentsThe Transformation Agenda is geared towards the promotion of a sound and stable financialsector. This was underpinned by the adverse effect of the global financial crisis on theNigerian financial system, which resulted largely from the poor risk management in Nigerianfinancial sector that led to the concentration of assets in certain risky areas and thereforeresulted in the deterioration in the quality of banks’ assets as well as liquidity concerns.Substantial reforms during the period under review were carried out to reduce the cost,enhance the quality of bank regulation and supervision and promote a sound and efficientfinancial system. Some of the key achievements recorded in the financial sector during thereview period include: completion of the process of recapitalization of the eight (8)intervened banks, completion of the resolution of the three (3) Bridge banks, and extension ofthe inter-bank guarantee for the intervened banks to 31st December 2011. The establishmentof the Asset Management of Nigeria (AMCON) was also part of the effort to resolve theproblem of the non-performing loan assets of banks.The universal banking model was jettisoned in order to ensure that banks focus on their corebanking business. A banking model that could subdue involvement in risky and non-bankingpractices by the operators was instituted, as a substitute. Currently, the industry has beensegmented into international, national, regional, mono-line and specialized banks. Capitalrequirements now vary with the range and complexity of the mandate. Banks were given adeadline of June 2013 to divest from real estate subsidiaries while, in the case of othersubsidiaries, the deadline of March 2012 has since expired.0246810121416M1M2M3M4M5M6M7M8M9M10M11M12M1M2M3M4M5M6M7M8M9M10M11M12M1M2M32011 2012 2013PercentHeadlineCoreFood
  • 103. 103Considerable progress was made in financial system surveillance through on-site examination,routine risk based supervision, risk assets examination, cross-border supervision of foreignsubsidiaries of Nigerian banks, and spot checks in the financial system. These supervisoryactivities were also extended to other financial institutions (OFIs) namely; DevelopmentFinance Institutions (DFIs), Primary Mortgage Banks (PMBs), Microfinance Banks (MFBs),Finance Companies (FCs) and Bureaux de Change (BDCs). Similarly, the CBN initiated,reviewed and sustained various reform initiatives aimed at repositioning and restructuring theOFIs for greater operational effectiveness and efficiency. Such efforts include: circulation ofnew guidelines for the operation of Primary Mortgage Banks (PMBs) in Nigeria, review of newframework and guidelines for the operations of MFBs and FCs, adaptation and adoption of newbanking reforms for other financial institutions, and exposure of a draft Financial LiteracyFramework.A review of the stability of the banking sector during the period shows improvement in theasset quality of banks. The average capital adequacy ratio of banks rose from 4.03 percent atend-December 2010 to 17.7 percent and 18.3 percent at end-December 2011 and end-December 2012, respectively, higher than the global threshold of 10.0 percent. Similarly, thebanks’ Non-Performing Loans (NPL) ratio fell from 15.49 percent at end-Dec. 2010 to 4.95percent and 3.47 percent at end-December 2011 and end-December 2012, respectively. Theindustry liquidity ratio also was high at 69.06 percent and 63.9 percent respectively, at end-end-Dec. 2011 and December 2012, up from 47.46 percent at end-Dec. 2010.Figure 8.10: Trends in Financial System IndicatorsSource: CBN8.5.1 Improvement in Access to CreditThe real sector has been recognized as the engine of economic growth across differentjurisdictions. However, in Nigeria, the sector has been disadvantaged, with respect tosourcing financial resources competitively. Some of the reasons for this relate to high4.0315.4947.4617.74.9569.0618.33.4763.9020406080Capital Adequacy Ratio Non-Performing Loans Liguidity RatioPercentEnd-December 2010 End-December 2011 End-December 2012
  • 104. 104operating costs, long payback periods, and elevated risks of operation. Thus, the Central Bankannounced a wide range of financial support for the various sub-sectors of the real sector.These interventions were aimed at delivering credit at below market rates. Some of theseinterventions are highlighted below:8.5.2 Commercial Agriculture Credit Scheme (CACS)The Commercial Agriculture Credit Scheme (CACS) was established in 2009 to finance largescale projects along the agricultural value chain, aimed at modernizing the agricultural sectorin Nigeria. With a capital base of N200 billion, the Scheme is funded by a 7-year tenuredFederal Government Bond. Since inception, 270 projects, cutting across private and publicsectors, have been supported. These projects have created a total of 100,301 jobs in 2012,while capacity utilization of the projects under the scheme, especially, poultry increased onaverage from 35 percent to 90 percent. At end-February 2013, the total amount released bythe CBN under the Commercial Agriculture Credit Scheme (CACS) to the participating banksfor disbursement stood at N199.5 billion.8.5.3 N200 Billion SME Restructuring/Refinancing Fund (RRF)The N200 billion SME/Manufacturing Refinancing and Restructuring Fund was established bythe Central Bank of Nigeria (CBN) in March, 2010. It was targeted at galvanizing the capacityof SME manufacturing firms to contribute to national economic development. Sinceinception, 535 projects have benefited from the fund. In terms of job creation, the projectshave generated 13,886 new direct and 971,247 indirect jobs. There was also a significantimprovement in the aggregate turnover of the beneficiary projects, with turnover andcapacity utilization increasing by 87 percent and 11 percentage points, respectively.8.5.4 Power and Aviation Intervention FundThe fund has a concessionary rate of 7 percent and is tenured for 10 – 15 years. Thecumulative effect of the concessionary rate and the long payback period resulted in a netsaving of N11 billion on interest expenses as at end-2012. In 2012, 36 projects comprising 21power and 15 aviation projects were funded. The fund has also boosted power generation inthe country as twelve (12) of the power projects have a combined generating capacity 647.6MW, out of which 377.2MW has been uploaded to the national grid.8.5.5 Nigeria Incentive – based Risk Sharing Scheme for Agricultural Lending (NIRSAL)To develop the agricultural value chain, the CBN conceived the Nigeria Incentive-Based RiskSharing System for Agricultural Lending (NIRSAL) in collaboration with the Alliance for GreenRevolution in Africa (AGRA) in 2011. The scheme is aimed at providing a risk-sharingmechanism that will enable harnessing of financial resources from the banks in support ofagricultural lending. The programme was approved by President Goodluck Ebele Jonathan in2012.
  • 105. 1058.5.6 National Financial Inclusion Strategy (NFIS)In 2012, the CBN launched the National Financial Inclusion Strategy, which sought to decreasethe number of Nigerians that are excluded from all financial services from 46.3 percent to 20percent by 2020, as committed to in the ‘Maya Declaration’. The NFIS was conceptualized toincrease access to and usage of financial services, through harmonizing existing policies,schemes, institutions, and enhancing their effectiveness/efficiency. Under the NFIS, thenumber of Nigerians that would be brought into the formal sector was expected to increasefrom 30 percent to 70 percent by the year 2020.8.5.7 Payments SystemThe Central Bank, in collaboration with other stakeholders, continued the implementation ofpolicies, guidelines and initiatives to ensure the efficiency, safety and reliability of thepayments system. Specifically, in its effort towards achieving the Payments System Vision20:2020 (PSV20:2020), the Central Bank: Introduced the cash-less policy in 2011 and commenced its implementation in April2012 in Lagos. Its main objectives were to drive the development and modernizationof the Nigerian Payments system, in line with Vision 20:2020, reduce the cost ofbanking services, promote financial inclusion, enhance the effectiveness of monetarypolicy in managing inflation and curb some of the adverse consequences associatedwith huge usage of cash in the economy. Approved Guidelines on cheque truncation in Nigeria Approved the revised guidelines on: Transaction Switching Services; stored Value andPrepaid Card Issuance, Enforced compliance with Nigeria Uniform Bank Account Number (NUBAN) code. Initiated the Payment Terminal Aggregator (PTA) and a standardized T+1 settlementamong industry players, with a view to ameliorating the cost of transactions. Issued new point of sale (PoS) guidelines to encourage banks and other serviceproviders to share PoS electronic devices. By end-December 2012, Point of Saleterminals increased from about 5000 in 2010 to 111, 866. Also 20 Mobile Moneyoperators were licensed under the mobile money initiative, which was launched in2012.8.6 Capital Market DevelopmentsThe Nigerian capital market witnessed modest growth and development during the reviewperiod. Following the financial crisis, in 2008/2009, the total market capitalization and theall-share index fell to N10.33 trillion and 24,770.5, respectively, at end-December 2010 andwere N10.28 trillion and 20,730.63, respectively, at end-December 2011. There was,however, an unprecedented growth in the major indices of the Nigerian Stock Exchange(NSE), during 2012 and the first quarter of 2013. In particular, activities on the NSE werebullish, arising from positive sentiments and critical market reforms by the fiscal authoritiesduring the period, especially the bail out of the stock brokers.
  • 106. 106Figure 8.11: All Share index and market CapitalizationSource: Nigerian Stock ExchangeThe total market capitalization increased significantly by N3.86 trillion or 35.29 percent toN14.40 trillion, at end-December 2012 and further by 16.41 percent at end-march 2013. Themarket capitalization of equities traded on the floor of the Exchange jumped to N8.98 trillionby end-December 2012 and further to N10.73 trillion at end-March 2013, indicating that on ayear-on-year basis, it appreciated by 37.31 percent. Similarly, the market capitalization inthe bond section of the market continued to improve, expanding significantly by 55.61percent to N5.82 trillion at end-December 2012 from N3.74 trillion at the correspondingperiod in 2011. On the other hand, the All-Share Index of listed securities rose from 20,773.98at the end of 2011 to 28,078.81 at end-December 2012, indicating a 35.47 percent increase.The positive sentiments could be attributed to the renewed interest in the Nigerian economyby both local and foreign investors and the expectations of a higher return in the comingyear.8.7 External Sector DevelopmentsA look at the Balance of Payments reveals that the current account surplus-to-GDP ratio wassatisfactory during the review period. The goal in the Transformation Agenda is to maintainan average current account surplus-to-GDP ratio of 3.65 percent in 2010-2012 but the actualaverage performance was 4.77 percent, representing a 1.13 percent improvement, over thetarget. In addition, growth in non-oil exports averaged 29.57 percent in the review period,thus, surpassing the average TA target of 25.92 percent in 2011 and 2012. This can beattributed to rising demand for the country’s non-oil exports. The target growth in theBalance of Trade was 14.53 percent in the Transformation Agenda. However, the performanceduring 2011 and 2012 was 13.01percent, implying a gap of 1.52 percent.
  • 107. 107Table 8.12: Targets for External SectorTargets and Actuals for External SectorIndicator 2011 2012 2013Target Actual Target Actual Target ActualAverage Exchange Rate (N/US$) 153.90 153.86 155.60 157.50 159.50 157.30Growth in Non-oil Exports ( percentannual Change) 21.34 22.40 30.50 -4.70 31.60Source: Central Bank of NigeriaTable 8.12 Performance of External Sector2010 2011 2012Average Exchange Rate (N/$) 150.29 153.89 157.5Growth in Non-Oil Exports ( percent) 27.25 22.0 -4.70Current Account Balance (N’ Billion) 13.42 8.76 23.41Current Account Balance ( percent of GDP) 5.93 3.6 9.09Remittances (US$’ Billion) 19.81 20.61 21.89Foreign Direct Investment US$’ Billion) 6.10 8.91 7.03Portfolio Investment (US$’ Billion) 3.75 5.19 17.65Capital Account Balance (US$’ Billion) 2.06 -5.45 -1.61External Reserves (US$’ Billion) 32.34 32.64 43.83Months of Imports Equivalent of External Reserves 7.92 6.3 11.3Source: Central Bank of NigeriaThe foreign reserves target for 2011, 2012 and 2013 in the Transformation Agenda were US$75.56, US$84.83 and US$108.77 respectively. From US$32.64 billion in 2011, foreign reservesincreased in 2012 to $43.83 billion. Though this is below the target, it was a remarkableachievement, in view of the lingering effect of the global meltdown and the debt crisis in theEuro zone. The reserves position further improved to US$48.8 billion by end March 20138.7.1 Foreign Direct InvestmentA review of performance of foreign investment shows that FDI, despite the global meltdownwhich made international investors skeptical about investing in developing and emergingmarkets, significantly improved in 2011, but slightly declined in 2012. FDI increased in 2011,by 46.07 percent, to US$8.91 billion and US$7.03 billion in 2012 from US$6.10 billion in 2010.Thus Nigeria remained the highest recipient of FDI inflow in Africa within the period. It alsoindicates the Administration’s commitment to implementation of sound economicmanagement and enthronement of positive investment climate for attracting foreigninvestment. Other reasons are:
  • 108. 108 Stable macroeconomic fundamentals which make the economic environmentpredictable Sustained reforms in the financial and power sectors On-going rehabilitation of decayed economic and social infrastructure in Nigeria Improved investment climate in the Niger-Delta region owing to the success of theAmnesty programmeSimilarly, the performance of international home remittances was stable and surpassed theplanned target in the Transformation Agenda for the 2011 and 2012. Specifically, homeremittances increased from US$19.20 billion in 2009 to US$20.61 billion in 2011 and US$21.89billion. This translated to remittances-to-GDP ratios of 8.75 percent in 2010 and 8.98 percentin 2011, as against the targeted rate of 4.5 percent in both 2010 and 2011. The analysisfurther shows that the contribution of international home remittances to the economy washigher than the contributions of FDI and foreign aid in the country, both of which accountedfor 3.14 percent and 0.004 percent, respectively, during the plan period. In this regard, thereis a need to put effective policies in place to further enhance the mobilisation andcoordination of home remittances in the country.8.7.2 Domestic Foreign Exchange MarketIn the domestic foreign exchange market, a series of actions was undertaken to curbspeculative bids by the authorized dealers and to stabilize the market. Some of these actionsincluded: Meeting higher demand, following foreign investors’ divestment in response to thespread of the debt crisis in Europe Increasing the Cash Reserve Ratio (CRR) from 8 percent to 12 percent and reducing theNet foreign exchange Open Position (NOP) to 1.0 percent from 3 percent of NetShareholders’ Funds. Interventions at the interbank segment of the foreign exchange market and sustainedweekly sale to BDCs, in order to ensure steady supply at these market segments andmaintain rates within the target bands.Moreover, the CBN is actively involved in the management of the country’s foreign exchangemarket and reserves, to ensure that foreign exchange disbursements and utilization are inline with economic priorities. Effective management of the market and the external reserveshave ensured a stable value of the Naira, even in the face of global economic recession. Thishas made the country one of the choice destinations for foreign investments in Sub-SaharaAfrica. There has been a renewed accumulation of external reserves, a relatively stableforeign exchange rate, moderated market demand at the official foreign exchange marketand build up of a buffer against shocks. Nigeria’s gross external reserves stood at
  • 109. 109US$32.34billion in 2010. The reserves position further improved to US$32.64 billion as atDecember 2011. As at April 26, 2013, the external reserves were estimated at US$48.8 billion.Figure 8.12: External Reserves (US$ Billion)8.8 Summary of Key Macroeconomic AchievementsTable 8.13: Macroeconomic Indicators, 2009 - 2013S/N INDICATOR BASELINE TARGET Actual2009 2010 2011 2012 2013 2011 2012 2013i Global Ranking byNominal GDP45 44 - - - 39 36 36ii Nominal GDP(US$’ Billion)167 226 242 274 292 243 257 60.35iii Per Capita GDP(US$)1,079 1,420 1,4801,627 1,688 1,483 1,526iv GDP Growth Rate( percent)6.96 7.98 7.36 7.61 7.65 7.43 6.58 6.56v Budget Deficit (percent of GDP)3.27 3.25 3.11 2.85 2.95 3.14 2.82vi Retained Revenue(N’ Billion)2,479 2,341 3,3163,561 3,890 3, 141 3, 155 -vii Total Tax revenue(N’ Billion)2,1982,839 - - - 4,628 5,007viii Non-Oil TaxRevenue (N’Billion)1,258 1,359 - - - 1,558 1,8060102030405060Jun Dec Jun *Apr 262011 2012 2013US$BillionGross External Reserves (US$Billion)
  • 110. 110ix ECA and SWF(Fiscal Reserves)(US$’ Billion)6.9 2.0 - - - 4.6 9.2 9.85NSE ASI 20,82724,77020,730 28,078 33,159NSE MarketCapitalization (N’Billion)4,989 7,914 6,533 8,974 10,600x Credit Rating(S&P)B+ B+ - - - B+ BB-StableBB-Stablexi Monetary PolicyRate ( percent)7.44 6.08 12.0 12.5 12.13 8.9 12.0 12.0xii Prime LendingRate ( percent)18.99 17.59 - - - 16.02 17.02 16.59xiii Money Supply, M2( percent annualchange)18.11 17.48 28 28 13.93 13.93 15.34xiv Monthly AverageInflation Rate (percent)12.5 13.7 10.8 9.5 9.4 10.8 12.2 9.03xv Credit to PrivateSector ( percentannual change)32.58 12.02 - - - 5.13 40.01 6.79xvi Banks’ Non-Performing Loans( percent of TotalCredit)32.8 15.5 - - - 5.0 - -xvii Current AccountBalance ( percentof GDP)8.3 5.86 3.65 3.65 7.36 7.74xviiiNon-Oil Exports (percent annualchange)21.3430.5 31.0 29.55 29.57 -xix Average ExchangeRate (N/$)148.88150.4 153.9155.0 159.5 153.86 157.5 157.3xx Exchange RatePremium(WDAS/BDC) (percent)xxi External Reserves(US$’ Billion)42.38 32.34 - - 32.64 43.83 48.57xxii Number of Monthsof Import16.34 7.92 - - 6.45 11.3
  • 111. 111EquivalentxxiiiHomeRemittances(US$’ Billion)18.43 19.81 20.61 21.89xxivPortfolioInvestment(US$’ Billion)0.48 3.75 5.19 17.65Sources: NBS, IMF, FMF, CBN, NPC
  • 112. 112CHAPTER NINE: KEY REFORMS AND OUTCOMES9.1 Overview of the ReformsDuring the period under review, the Federal Government has undertaken a number of criticalreforms, focusing on different sectors of the economy. The reforms are a response to theneed for an enabling environment for the growth and development of the country. The keyareas of reforms include:i) Financial sector;ii) Fiscal sector;iii) Power sector;iv) Petroleum sector;v) Ports;vi) Aviation sector;vii) Public sector;viii) Public procurement;ix) Data generation;x) Agricultural sector;xi) Health sector;xii) Education sector;xiii) Economic coordination;xiv) Infrastructure sector;xv) Land; andxvi) Foreign policy.The highlights of the reform are presented in the sections below:9.2 Financial Sector ReformTo ensure a virile and private sector-supported financial sector, the government initiatedseveral reforms aimed at improving the performance of the financial sector and placing thebanking sector in a strategic position to support economic growth and transformation. Toinstill confidence in the financial sector, the banks were scrutinized to ascertaining theirstate of health. The banks found ailing were directed to recapitalize through mergers, orclose shop. These financial sector reforms were the chief drivers of the capital marketrecovery and current improved performance. Consolidating the success of the reform willfurther improve future performance and attract both domestic and foreign players in themarket. Among the key financial sector reforms measures introduced were the following:9.2.1 Establishment of the Asset Management Company of Nigeria (AMCON)AMCON was established to rid the banks of non-performing loans running into billions of Naira,recapitalize the ailing ones, improve access to refinancing opportunities for borrowers,improve Nigeria’s risk and credit rating by improving the balance sheets position of the banks,
  • 113. 113prevent job losses that characterized the banking sector and restore public confidence in theNigerian banking sector, the financial markets and the entire financial system.Thus, establishing AMCON represented the Government’s commitment to safeguarding theinterest of depositors, creditors and other stakeholders in the Nigerian financial system andto rejuvenate the economy. The non-performing loans in the banking sector available forpurchase by the institution were valued at $14.6 billion. Through this action, AMCON hassupported the financial sector recovery and, ultimately, the entire economy, by providingliquidity to the banks. In fact, the 5.6 percent growth in the NSE All-Share Index in the firsttrading week of 2011 was due mainly to the operations of AMCON as banks whose toxic assetswere bought topped the gainers’ list. The sources and uses of AMCON funds are as depicted inFigure 9.1.Figure 9.1: Sources and use of AMCON FundsSource: FMF9.2.2 Re-introduction of specialized bankingThe philosophy behind this policy is to promote a sound financial system against the backdropof the conviction that banks are distracted from doing core banking business under theuniversal banking model. Many banks were found engaged with currency round tripping, carrytrade, funding trading services, and capital market trading, which activities divert the banksfrom performing their core functions, especially lending to the real sector. In the new modeltherefore, only three broad types of banks are allowed to operate: the commercial banks; themerchant banks; and the specialized banks.The reforms are aimed at sanitizing the banking sector and positioning it for improved servicedelivery for the purpose of growing and transforming the economy in a sustainable way. Inthis regard, the reforms are expected to improve credit flows to the real sector of theeconomy.Sources of Funds Uses of Funds RepaymentCapital Contribution byCBN & MOF (N10billion)Tier II capital(N500 billion)Zero - coupon bonds(N3,884 billion)Price Discovery(N 13 billion)Recapitalization ofintervention fundNPL purchase(N1,780 billion)Acquisition of bridgebanks (N737 billion)Capital injection intointervened bank(N1,364 billion)Restructured purchasedNPLsProceeds fromdivestments ofownership ofintervened banksProceeds from the saleof Bridge BanksReinvestment incomeSinking Fund(Contribution from CBN+ all banks)
  • 114. 1149.3 Fiscal ReformsThe key fiscal reforms introduced by the current Administration include:9.3.1 Establishment of the Sovereign Wealth Fund (SWF)The SWF is a state-owned investment fund comprising financial assets that include stocks,bonds, and other financial investments aimed at effectively managing the proceeds from oilexports for the benefit of both current and future generations. The SWF is intended as areplacement for the Excess Crude Account (ECA) that serves, among others, as a stabilizationfund. The thinking behind the SWF is to ensure that excess crude oil revenues are madeproductive through their investment in profitable ventures. It also overcomes the challengeinvolving the legality of the ECA which is more of a product of political exigencies and lackslegal backing.The SWF Bill was submitted to the National Assembly for consideration and passage into lawon 13th September 2010 with about $1 billion set aside as take-off funds. The Fund is toretain the stabilization role of the ECA, while serving as a medium of savings for futuregenerations and funding of PPP initiatives for infrastructure development. Following itsestablishment, the board of the Nigeria Sovereign Investment Authority was inaugurated onthe 9th of October 2012. A comprehensive strategy was developed, presented and approvedby the Board in November 2012 with full roll out of the implementation of the strategy in2013.9.3.2: Fiscal Consolidation and Debt ManagementThe measures taken to ensure fiscal consolidation and improved debt management aresummarized below:Fiscal consolidationRationalization of recurrent expenditure: Extending biometric verification to more MDAs (IPPIS) Partial implementation of the rationalization of government agencies Focus on completing on-going capital projects Drastically reducing administrative-type capital expenditure from the budget, tocreate space for more impactful projects
  • 115. 115Budget Signing by Mr. PresidentImprovement in Debt Management Development of debt management capacity at sub-national level. Prepared the country’s first-ever National Medium Term Debt Management Strategy A sinking fund has been put in place to retire part of the Federal Government’smaturing domestic debt.Table 9.1: Fiscal Consolidation with growth (1): Reducing budget deficit and changing budgetComposition9.3.3 Integrated Payroll and Personnel Information System (IPPIS)The Integrated Payroll and Personnel Information had a total of 215 MDAs including 153,019staff on the system as at January 2013 with a further 312 MDAs to be included within theyear. The system has helped to enhance efficient personnel cost planning and budgeting,ensuring that cost is based on actual verified numbers and not estimates, thereby saving thegovernment substantial resources.2006 2007 2008 2009 2010 2011 2012 201312.35% 3.64% 0.89% 3.02% 6.11% 2.96% 2.85%2.17%1.81%10.54% 0.55% 0.19% 3.27% 3.25% 3.14% 2.81% NA70.1% 64.0% 68.4% 62.9% 65.8% 74.4% 71.5% 68.7%29.9% 36.0% 31.6% 37.1% 34.2% 25.6% 28.5% 31.3%1 NASS AdjustmentSource: Budget Office of the FederationTarget 40%ChangingBudgetComposition…RecurrentExpenditure(% of Budget)Budget Deficit(% of GDP,Actual)Budget Deficit(% of GDP)ReducingBudgetDeficit…CapitalExpenditure(% of Budget)
  • 116. 1169.3.4 Government Integrated Financial Management and Information System (GIFMIS)The introduction of the Government Integrated Financial Management and Information System(GIFMIS) has greatly improved the efficiency of government expenditure. The system iscurrently being used to manage the financial transactions of government in MDAs and hasreduced wastages in the system.9.3.5 The Treasury Single AccountThe Treasury Single Account (TSA) is another major fiscal reform introduced by thegovernment to unify the structure of government bank accounts and give a consolidated viewof the cash position. There are currently, 92 MDAs on the system with another 97 FCT basedMDAs to be added May 2013. With the introduction of the system, there has been a reversal ofthe overall Government accounts position, from an average overdraft of N102 billion to acredit of N4.6 billion.Table 9.2: Financial Management: Improving the efficiency of Government financialmanagementSource: FMFThe various fiscal reforms carried out during the period under review have resulted inimproved public financial management. This has helped to improve Nigeria’s sovereign creditrating, at a time when most of the advanced and emerging economies are being downgraded.See the Table 9.3Expenditure side measures takenThe Integrated Payroll and Personnel InformationSystem (IPPIS): Enhances efficient personnel cost planning andbudgeting as personnel cost will be based onactual verified numbers and not estimates. 215 MDAs (153,019 staff) are on IPPIS as atJanuary 2013. 321 MDAs not yet on IPPIS.Introduction of the Government IntegratedFinancial Management and Information System(GIFMIS) in April 2012Treasury Single Account (TSA) is a unifiedstructure of government bank accounts that givesa consolidated view of the cash position- 92 MDAs are currently on TSA- 97 Abuja based MDAs will be added by March2013- Reversal from an average overdraft positionof N102 billion to a credit of N4.6 billionIPPISGIFMISTreasurySingle Account(TSA)
  • 117. 117Table 9.3: Nigeria’s Sovereign Credit RatingFitch: BB-Stable, up from previous BB- negative outlook Fitch RatingsS&P: BB- Stable, up from previous B+ Standard & Poor’sMoody’s: Ba3 Stable (equivalent to Fitch BB- Stable);commenced ratings of Nigeria in Nov. 2012, without priorinvitationMOODY’SWorld Bank Voice Enhancement Programme – Nigeriaamong 16 countries whose voice has been increasedWorld BankSource: FMFThere has also been rising confidence by internal and external investors in the Nigerianeconomy, as a result of the improved performance of the economy during the period. This ishighlighted in the Table 9.4.Table 9.4: External Validation of Macroeconomic AchievementsNigeria’s Eurobond is performing better now: Bond price (the value of our bond) is $117.52(Dec 14) against $103.49 at the beginning of2012. Bond yield (the cost of financing) has fallen byover 200 basis points, to 4.18 percent (Dec 14)from 6.23 percent at the beginning of 2012.Nigeria’s domestic bonds are doing well: Recently included in JP Morgan EmergingMarkets Government Bond Index (GBI-EM) To be included in Barclays EM Bonds Indexin Q1 2013 IFC’s first Naira bond oversubscribed by -50 percent. IFC increased bond issue byan additional N4 billion on the back ofstrong demand for the Naira bond.Inclusion inEmerging MarketIndicesEurobondPerformance“The Jonathan Administration’s effective management of the economy combining fiscal andmonetary policy tightening, has led to a sounder macroeconomic backdrop and a more conduciveinvestment environment for international fixed income investors- JP Morgan December 2012
  • 118. 1189.4 Boosting the Insurance Sector (NAICOM)Government equally carried out critical reforms in the Insurance sector in recognition of therelevance of the Sector to macroeconomic stability and overall business development inNigeria. The reform measures are highlighted in Table 9.6.Table 9.6: Developments in the Insurance Sector 2010 - 2012Situation in 2010…. Achievement between 2011 - 2012 Gap in regulatory oversight Minimal enforcement Limited scrutiny of financialstatements Ad-hoc cooperation with oversearegulations Gaps bridged through guidelines(10 different guidelines issued) Improved regulatory oversight,and in-depth analysis of financialreports Formalized MoU with otherjurisdictions for cross-borderoversight 700,000 policy holders & 20,000employees Total insurance premium incomeN157 billion and premium ratio toGDP 0.5 percent Less than 10 percent localretention of Oil & Gas risk 1.5 million policy holders and40,000 employees Total insurance premium N250billion and premium ratio to GDP0.7 percent Claims paid were N37 billion Limited Public awareness andavenue for complaints redress Claims paid increased to N52billion Complaints process strengthened EFInA survey shows that 40percent of Nigerians are nowaware of insuranceSource: FMF9.5 Pushing reforms of the Nigeria’s Development Finance Institutions (DFIs)DFIs are important to sustained sectoral funding, particularly in the real sector of theeconomy which is considered top priority by the current Administration in efforts to realizethe objectives of the Transformation Agenda. Government therefore embarked on a numberof reform programmes for the sector during the review period. The key reforms include:StrengthenedRegulatory ProcessMarketDevelopmentStakeholders’Management
  • 119. 119Table 9.7: Reforms of the Nigeria’s DFIsSource: FMF9.6 Power Sector ReformPower (electricity) is among the most serious constraints facing the Nigerian economy today.This made the government to unveil a well articulated strategy designed to end the chronicpower shortages. This culminated into a Roadmap for Power Sector Reform. The Roadmap,with its emphasis on privatization of power generation and distribution and the constructionof a new transmission network, is expected to reduce substantially the binding infrastructureconstraints. Some of the proposed and already achieved activities in the reform include,unbundling the Power Holding Company of Nigeria, privatization of the unbundled entities,establishment of a regulatory agency, and establishment of rural electrification agency andrural electrification fund.The Nigerian Electricity Regulatory Commission (NERC) was empowered to oversee the sector,regulate tariffs and service quality by the existing and prospective service providers. Toavoid the challenges posed by the monopoly of the PHCN, NERC is also charged withpreventing anti-competitive behaviour, including oversight of mergers and acquisitions. Inaddition, the government provided World Bank guarantees to encourage independent powerproducers in the country. The reform has generated a lot of interest among local and foreignBackground/Context… …State of Nigerian DF Is… …Current ResolutionMismatch of loan tenors :borrowing short -termdebt to undertake long -term projects.High cost of borrowing:lending rates between 16 -22 percent.Long-term, concessional,development finance inNigeria is urgently neededNigeria currently has 5 DFIs:BoA, BoI, NEXIM, FMB andInfrastructure Bank (formerly,UDBN; already partly privatized).However, several Nigerian DFIsare inefficient and notsustainable in the long runGovernment is currentlyevaluating options givenNigeria’s existing DFIs, andfuture financing needsOn-going work to examineglobal best practices forDFIs:Considering more wholesalelending model anddiversifying funding sourcesto make available 10 to 15year money at reasonablerates.
  • 120. 120investors, with some US investors already indicating interest to invest $100 billion in severalsectors of the Nigerian economy, predominantly in the power sector.To ensure the success of the power sector Roadmap, eleven (11) distribution companiescovering the entire country were pre-qualified to serve as distribution outlets for powergenerated. Key transmission projects across the country are being completed by thegovernment. There is also a gradual movement towards a cost-reflective tariff system thatwill ensure that the sector is sufficiently attractive to both local and foreign investors. AMemorandum of Understanding has also been signed with General Electric and Siemens on theprovision of power infrastructure. In addition, substantial progress has been made in effortsto ensure steady supply of gas to the power plants. Overall, these reforms are expected tohave significant effect on power supply in the country that includes achieving a target ofinstalled capacity of 19,246MW, available capacity of 18,067MW and delivered capacity of13,000MW by 2015.Table 9.8: Major Achievements in the Power SectorKey MeasuresInauguration of the boards of the National Bulk Electricity Trader (NBET) and NationalElectricity Liability Management Company (NELMCO)Signing of letters of comfort, PPAs etcNegotiated GuaranteesSolving financial problems and paying off PHCN workersFull Transfer of Transmission Company of Nigeria to Messrs Manitoba, the preferred bidenders,Successful privatization of the GENCOs and DISCOs to preferred biddersSource: Ministry of Power9.7 Petroleum Sector ReformIn line with the objectives of the Transformation Agenda, substantial progress has been madein the petroleum sector, through current reforms to unleash the potential positive effects ofthe sector in mainstreaming the private sector as the engine of growth. For a long time inNigeria, the petroleum subsidy system has constituted a major financial drain on theeconomy. Between January 2006 and August 2011, total Government expenditure onpetroleum subsidies amounted to N3.7 trillion. In January 2012, an attempt was made to fullyremove the subsidy, resulting, however, only in partial removal due to the over politicisationof the measure, leading to public misunderstanding. The partial removal of the subsidyachieved, however, has saved the nation over N1 trillion in 2012. The savings are being used
  • 121. 121to improve job creation and the inclusive growth policy of government, through the SubsidyReinvestment and Empowerment Programme (SURE-P). There are also ongoing negotiations tofully privatize all refineries by transferring ownership, management and finance of therefineries to the private sector. When completed, this will attract billions of dollars in foreigninvestment and further promote technical and skills transfer to Nigerians. This will also helpsave for our country significant foreign exchange, by the gradual containment of petroleumproducts imports.Table 9.9: Cleaning up the Petroleum Subsidy RegimeSource: FMF9.7.1 Petroleum Industry Bill (PIB)The PIB seeks to establish a legal and regulatory framework, institutions and regulatoryauthorities for the Nigerian petroleum industry, to establish guidelines for the operation ofthe upstream and downstream sectors and for purposes connected with the same. Thefundamental objectives include: vesting of petroleum and natural gas; allocation of acreage;government participation; environment and air quality emissions; community development;and Nigerian content. The PIB is therefore, in essence, a reform legislation which aims toreplace the existing myriad of legislative and administrative instruments governing thepetroleum industry by one omnibus legislation that establishes clear rules, procedures andinstitutions for the administration of the petroleum industry in Nigeria. The PIB is stillBackground Reform Process Remedial ActionGN Billions The Petroleum subsidypayments have grownsharply in recent years Loose verification systemresulted in widespreadfraud and smuggling toneighboring countriesThe Aig-Imoukhede Committee was set-upby the MOF and strongly supported by Mr.President, turned into the PresidentialSubsidy Verification Committee:- Verified tanks and sales records ofmarketers- Reviewed N1 trillion of 2011transaction- Found about 196 transactions(N232 billion) as not verifiable- Clawed back N26 billion Appointed newauditors, with stricterguidelines:- Tighter paymentregime introduced- Published names offraudulentcompanies – someare beingprosecuted byEFCC2006 20112562100+720%
  • 122. 122awaiting passage in the National Assembly. It is expected that once it is passed, the Act willrevolutionize the petroleum industry in Nigeria.9.8 Port ReformsThe government has focused on ports and customs reforms to ensure efficiency in thehandling of ports and ports-related businesses. The reforms are to ensure that all types ofcargoes are cleared within a 48-hour period. To achieve this feat, the number of agenciesinvolved in the ports was streamlined by 50 percent, from 14 to 7. The 7 remaining ones arethe Nigeria Customs Service, the Immigration, the Nigeria Police, the Nigerian PortsAuthority, the Nigerian Maritime Administrative and Safety Agency, the National Drug LawEnforcement Agency, and the Ports Health Agency.Table 9.10: Nigeria’s Port ReformsSource: FMFThe agencies were mandated to operate 24 hours through shift operations that ensureavailability of officers to discharge their duties without delay. Paperwork and bureaucraticrequirements for Ports and Customs clearance were drastically streamlined to promote timeefficiency. The previous practice where Customs harass cargo transporters on the highwaywas discontinued by disbanding the Nigeria Customs Task Force. Substantial investment hasalso been made in Ports infrastructure development with the recent upgrade of the ASYCUDAsystem to version 3.0 and the integration of customs operation through a portal named“Nigeria Integrated Customs Information Systems” thus eliminating multiple submission ofcargo and goods documentation to several stakeholders. To ensure private sector involvementin the reform process, private sector monitoring groups were set up to monitor progress andidentify additional specific areas that require focus.Government has achieved the following52,080 TEUovertimecontainerstransferred toIkorodu LighterTerminal.4Ports operating a24-hour regimefor the first-timesince 1970…3Disbanded NCStask force thatharasses cargoon the highway.2Apapa-OshodiExpresswaycleared withFMWrehabilitatingthe roads.1Reduced thenumber ofagenciesoperating in theports from 14 to7.
  • 123. 1239.9 Aviation Sector ReformsThe aviation sector is very critical to the growth of any economy. It is pivotal to key economicsectors that include travel and tourism, agricultural production and distribution, ruraldevelopment, trade and commerce, manufacturing and other non-oil sectors, which arecritical to the economic transformation of any nation. To reposition the Nigerian Aviationsector for this role, the current Administration developed a common vision, and mission in theframework of a “Aviation Sector Master Plan’. This Master Plan is aimed at reforming theaviation sector to make air transportation the preferred and safest means of transportation,creating a self-sustaining business model and driving socio-economic growth in Nigeria.Strategic thrusts of the Master Plan/Reform Develop hubs in-line with international standards and best practices Develop requisite capacity and manpower to meet the needs in the aviation industryfor the 21st century Change the business model of industry into self-sustaining model through increasedprivate sector participation (reduce financial burden on government) Maximize the contribution to the socio-economic development of the Nigerianeconomy through increased trade and in-flow of FDI, focusing and growing of agro-allied and improved economic processing zones at designated airports and resultantjob creationThe key objectives of the Master Plan include: reform/make slimmer the industry, includinginstitutionalizing world class safety and security standards; infrastructure development;designation of Economic Free Zones and Agro-Allied Focused airports, based on localendowments and competitive advantage; improving passenger welfare; growing domesticairlines and creating national carriers.The investment opportunities to be derived from the reform include boosting the earnings ofthe sector by approximately 300 percent in the next 5 years; increased private sectorparticipation and construction of Maintenance Repair Organizations (MROs)’s Facilities. Others
  • 124. 124are commencement of aircraft sales and leasing; cargo handling services; cargo andperishable Ware Housing and Commercialization of Aviation Training Organizations (ATOs)among others.9.10 Public Service Reforms, Performance Management Contracts and Public Procurement9.10.1 Public Service ReformsIn line with the key strategies of the Transformation Agenda, a number of reforms arecurrently ongoing in the public service. These include:I. Tenure System for Permanent Secretaries and Directors: Introduction of a tenuresystem in the public service for Permanent Secretaries and Directors. This ensures thatthe service does not remain top heavy by allowing for regular succession in the topmost positions of the public service.II. Participating in Written Civil Service Examination for PS: Participation in writtenexaminations to form the basis for appointment of Permanent Secretaries, therebyimproving the quality of the public service particularly in the highest leadershippositions.III. Restructuring & Rationalization of Ministries, Departments & Agencies: Restructuringand rationalization of MDAs to right size the public service and enhance efficiency inservice delivery to Nigerians. This reform will also save the Federal government asubstantial amount of financial resources.IV. Pension Reforms: Several Pension reforms are currently ongoing in the public servicewith a transition form pay as you go to the contributory pension scheme.9.10.2 Performance Management System (PMS)Following the global trend, the present administration has introduced a robust performancemanagement/contracting system in Nigeria, as a public service management tool, formeasuring ministerial and individual performance, against negotiated performance targets.The administration reinforced the PMS with the inauguration of an integrated performancemanagement system comprising institutional and the individuals’ framework by the Office ofthe Head of the Civil Service of the Federation (OHCSF), and the establishment of a NationalMonitoring and Evaluation Department in the National Planning Commission in 2010.With the introduction of the PMS, the public service has recorded improvement and clarity inthe alignment of institutional and individual performance. Activities implemented for theinstitutionalization of the system include development of Key Performance Indicators (KPIs)that are used to track the delivery of Ministries, Department and Agencies (MDAs);development of performance agreements for Ministers and key government officials; theMinisters signing the performance agreements with Mr. President and cascading them down tothe Permanent Secretaries, Heads of Parastatals and Agencies; and the development of areporting template for the MDAs. The 2012 performance contract agreement between thePresident and Honorable Ministers of the Federal Republic has led to regular ministerialperformance reporting at the Federal Executive Council. This has resulted in higher degree of
  • 125. 125accountability on the part of public office holders and public servants, to Mr. President inparticular and more widely to the Nigerian people.9.10.3 Public ProcurementThe Public Procurement Reform was initiated as part of the Federal Government EconomicReform Agenda. It addresses negative consequences arising from inflation of contract costs,proliferation of projects, lack of procurement plans, poor project prioritization, poorbudgeting processes, lack of competition, and value for money in the award and execution ofgovernment contracts. Under the reform, all contracts must be advertised, followed by aprocess of pre-qualification, invitation to tender, technical and financial bid process, openingof tenders and evaluation process, to determine the company/organization best qualified forthe contract. Ministries, Departments and Agencies were encouraged to adhere to theseguidelines in public spending and budget implementation.The current administration has sustained this procurement system by providing strongpolitical and leadership support to the Bureau of Public Procurement (BPP), which hasresulted in gradual decline of cost of public expenditure and improved competitiveness in theaward of public contracts. The BPP, the agency responsible for public procurement hasthrough its operations in 2012, saved the Federal Government an estimated sum of N400billion.President Goodluck Jonathan signed performance agreements with all his Ministersin an effort to enhance performance, transparency and accountability in the conductof government activities
  • 126. 1269.11 Reform of the Data Generating ProcessThe Administration of President Goodluck Jonathan under the Transformation Agenda hasgiven priority to the reform of the data generating process. In this regard, the NationalBureau of Statistics (NBS) has received greater budgetary, as well as ICT and capacity buildingsupport. Some initiatives are being carried out in the area of data generation, consolidationand storage.A key element of the initiatives is the computation of States Gross Domestic Product (SGDP)which involves the disaggregation of economic activities by State where most of the economicactivities take place. The Federal Government in collaboration with the State Governmentshas begun the process of institutionalizing SGDP computation in seven pilot states, which isanchored by the National Planning Commission. This process has reached an advanced stageand the results for the pilot states are expected to be out by end-May 2013. It is worthy tonote that Nigeria is one of the pacesetters of SGDP innovation among the African countries.Another key initiatives by the NBS is the process of re-basing the GDP, in line with global bestpractice. It is global best practice for countries to rebase their GDP every five years. In thecase of Nigeria, such as a process has not been undertaken since 1990. The GDP rebasingprospect is expected to have significant benefits for Nigeria.9.12 Agriculture Reform (ATA)Nigeria’s average annual food import bill at US$3 Billion is unsustainable and cannotguarantee food security, let alone support the industrialization process for the countrythrough agro-based and value addition activities. The introduction of the AgriculturalState GDP Flag-off in Port Harcourt Rivers State
  • 127. 127Transformation Action (ATA) Plan by Government in 2012 is intended to provide acomprehensive strategy to increase domestic food production, reduce dependence on foodimports, expand value addition to locally produced agricultural products and create over 3.5million jobs by 2015. Through de-regulation, attractive financing, concentratedinfrastructure investments and competitive policies the revolution in the agriculture sector isexpected to be productive and efficient.The Growth Enhancement Scheme (GES) feature of the ATA has eliminated the middlemenwho largely profited from government’s fertilizer subsidies and inputs distribution. In respectof credit, commercial banks have been leveraged by the CBN to provide agricultural facilitiesto farmers under the Nigerian Incentive- Based Risk Sharing for Agricultural Lending (NIRSAL)while, in addressing infrastructural challenges, the private sector has been engaged in thedevelopment of crop processing zones and clusters.The key fiscal incentives to support the ATA are: Zero duty on machinery and equipment to process high-quality cassava flour Corporate tax rebate of 12 percent for bakeries attaining 40 percent substitution ofwheat for cassava Effective duty of 50 percent on imported polished rice to be raised to 100 percent inDecember 2012 to encourage domestic production 100 percent duty on wheat flour from July 1, 2012 Other reforms in the pipeline, under the ATA include, the setting up of AgriculturalCorps Processing Zones, establishment of Marketing Corporation and stimulation co-investment with state governments.9.13 Health Sector ReformThe Government recognizes that to improve the health and wellbeing of Nigerians, there is aneed to scale-up the provision of essential health care services, strengthen the health system,including providing additional financing for health, as well as building and strengthening thePrimary Health Care System. The Administration has built on the existing framework providedby the National Strategic Health Development Plan (NSHDP) to improve the health status ofNigerians and ensure transparency and service delivery in the sector.An Action Push Agenda was initiated in 2012 to identify low hanging fruits from the NSHDPand put in place actions to fast track their harvesting, in order to yield quick dividends for theNigerian populace within the eight priority areas of the NSHDP and the six (6) core values ofthe Action Push Agenda (APA), as presented in the Table 9.11:
  • 128. 128Table 9.11: Health Sector Action Push AgendaNational Strategic Health Development Plan (NSHDP) Six core Values of theAction Push AgendaLeadership and Governance for Health ActionHealth Service Delivery ContinuityHuman Resources for Health TeamworkFinancing for Health InnovationNational Health Management Information System OutreachPartnerships for HealthNetworkingCommunity Participation and OwnershipResearch for HealthSource: FMHThe NSHDP and the Action Push Agenda serve as the two primary instruments driving allactions in the health sector. The NSHDP is the overarching compass document that providesbroad strategic direction for the health sector. Other priority health initiatives being pursuedto fast-track the transformation of the health sector include: Saving one million livesinitiative; Life Saving Commodities Initiatives; Introduction of New Vaccines: PreventiveVaccines Introduction; Midwives Service Scheme (MSS); Community Based Health Insurance;and the establishment of the Nigeria Centre for Disease Control.9.14 Education Sector ReformThe Transformation Agenda in the education sector aims to refocus the educational system inthe areas of access and quality, infrastructure, teacher quality and development, curriculumrelevance, funding and planning. This led to the introduction of several reform initiatives inthe sector. Reforms in the sector have been largely achieved through the 4-year StrategicPlan, which provides a coordinated approach to addressing the challenges of qualityeducation delivery in Nigeria.Some of the initiatives for transforming the Education sector are: Institutionalization of EarlyChildhood Care & Education (ECCE); The Almajiri Education Programme; Back-to-SchoolProgramme – South-East; Promoting Girl Education; Construction of Model Nomadic EducationCentres; and Revitalization of Adult and Youth Literacy.
  • 129. 129President Goodluck Jonathan launching an Almajiri school & Vice President Namadi SamboPresenting library materials to junior secondary school Kids9.15 Economic CoordinationThe coordination of economic management process in the country has greatly improvedduring the review period. This has resulted in the promotion of harmony and synergy amongthe medium term plans and the annual budgets, as well as the policies and strategies pursuedby various MDAs. There was relative stability in the economy, despite the fiscal challengeswhich put a lot of strain on monetary policy and its ability to maintain monetary stability andkeep the inflation fairly stable.At the federal level, the National Economic Management Team (NEMT) was strengthened witha view to ensuring effective management of the economy during the period. The monthlymeetings of the Team are chaired by His Excellency, the President of the Federal Republic ofNigeria. Some of the members of the NEMT are Mr. Vice President, Governors of Anambraand Adamawa, Ministers such as the Coordinating Minister of the Economy (CME)/Hon.Minister of Finance, the Minister of National Planning, and Governor of the CBN. Othermembers include key leaders of the private sector such as Chairman of Dangote Group,Academia such as the President of the Nigerian Economic Society, among others. This hasbrought in the needed sub-national and private sector perspectives into the body to make itmore vibrant and nationalistic.The NEMT is being supported by the Economic Management Implementation Team (EMIT),which meets on a weekly basis, to address socio-economic issues in the country. The EMIT ischaired by CME/HMF. Other members include the Ministers of National Planning, Trade &Investment, Power, Health, Agriculture, Works, Ministers of State of Finance and Health, TheChief Economic Adviser to the President and the Deputy Governor of CBN, among others.The NEMT and NEMIT have helped to reduce bureaucratic bottlenecks associated with policydecision making and brought a private perspective to public sector decision making.
  • 130. 1309.16 Gender Budgeting InitiativeThis initiative jointly implemented by Ministries of Finance and Women Affairs, aims toaddress two key issues: mainstreaming government efforts to improve the lives of girls andwomen in Nigeria into the budgeting process; and linking funding release to concrete resultsdelivery for these girls and women, with the 2013 budgeting process as pilot. Currently, fiveMDAs are participating in the pilot phase. These are Agriculture, Communications Technology,Health, Water Resources and Works. Memoranda of Understanding have been signed betweenthe FMF, Ministry of Women Affairs and the 5 participating Ministries. The first TechnicalWorking Session has been held with all MDAs focal points to populate work plans, definebeneficiaries and approaches, identify challenges and opportunities, timelines and budgets.To ensure successful delivery of this initiative, concrete results for girls and women havebeen defined for delivery in the 2013 budget cycle for each MDA’s projects. A provision of N3Billion has been made to fund additional measures to ensure the delivery of the projects inthe 2013 Budget.9.17 Infrastructure Development InitiativeThis initiative is aimed at ensuring coordinated approach to infrastructure development inNigeria. Over the years, there have been several sectoral Master Plans. These include theNational Transport Master Plan, Gas Master Plan, Energy Master Plan and Rail Master Plan.These master plans, however, were developed separately and independently from oneanother. Therefore, the need to make these plans consistent with the present developmentpriorities became a key focus of the present administration. The 30-year National IntegratedInfrastructure Masterplan (NIIMP) currently being developed adequately aligns with theaspirations, focus and priorities of the people and government, in order to address theemerging development challenges in the country. This project that commenced in late 2012 isscheduled to be completed in August 2013.The delivery and development of an infrastructure master plan presents an integrated andcollaborative development plan where infrastructure development will no longer occur in silosthrough MDAs but rather in a coordinated manner, which engenders financial investments andplanning, project delivery and improved monitoring and evaluation mechanisms.9.18 Housing SectorNigeria currently has a housing deficit of 23 million that should be met by 2020. This wouldrequire annual supply of a minimum of 2.6 million homes to bridge the gap. Mortgagetransactions are very low and mortgage institutions are few. To address these challenges, amajor reform being carried out in the sector involves the establishment of a MortgageRefinancing Company (MRC) as a Public-Private Partnership (PPP) arrangement withshareholders. Participants in this arrangement are the Federal Government, InternationalDFIs, IFC, Shelter Afrique, Nigerian Banks, Primary Mortgage Institutions (PMIs), InsuranceCompanies and Private Equity Investors.
  • 131. 131This collaboration is Government’s new approach to housing delivery whereby the design andimplementation of housing policy and programmes is in partnership with the private sectorand other relevant stakeholders. For social housing, Government will be directly involvedthrough the provision of funding, subsidies and other incentives, as it is the practice globally.9.19 Land ReformIn recognition of access to land as a necessary and essential precondition for sustainablehuman settlement, food production as well as national socio-economic development, theCurrent Administration constituted a Presidential Technical Committee on Land Reform(PTCLR) in November, 2011 to collaborate with the states and local governments to put inplace effective and efficient land governance system for the country.The achievements of the PTCLR are:i. Sensitization of all stakeholders including officials of states and local governments,professional bodies, civil society organisations (CSOs);ii. Conduct of studies on Demand/Public Perception, Valuation Mechanism, LandAdministration Service Delivery and Socio-Economic Baseline study;iii. Installation of Continuously Operating Reference Station (CORS) four states, namelyImo, Kano, Katsina and Ondo to provide a more accurate reference system forSystematic Land Titling and Registration (SLTR);iv. Development of Registration Software – Solution for Open Land Administration (SOLA)to reduce corruption and other non-transparent and untimely land managementpractices in the country; andv. Preparation of SLTR Manual and regulations to facilitate the implementation of theSLTR procedures;The Administration intends to establish a National Land Reform Commission to create aneffective, efficient and sustainable platform for the prosecution of the national land reformagenda for the socio-economic and environmental transformation of Nigeria.9.20 Foreign AffairsGovernment has also introduced a reform-based initiative to reduce the financial burden ofservicing Nigerian Missions abroad. The initiative known as SMART MISSIONS, involves theestablishment of diplomatic missions with only the Ambassador, assisted by a few local staff.This is to ensure that Nigeria’s global ambition is serviced while funds are being conservedand without compromising diplomatic standards. As at end-December 2012, SMART MISSIONSare in Bujunmuta, Burundi; Lilongwe, Malawi; Kigali, Riwanda; The Vetican, Italy; Combo, SriLanka; Istanbul and Turkey; Doha; Qatar.
  • 132. 132CHAPTER TEN: GOOD GOVERNANCEThe Worldwide Governance Indicators (WGI) research project defines good governance as the“process and institutions by which authority in a country is exercised; governments areselected, held accountable, monitored and replaced; the capacity of governments to manageresources efficiently, and to formulate, implement and enforce sound policies andregulations; and, the respect for the institutions that govern economic and social interactionsamong them”. It holds a crucial position in influencing economic and political issues in themanagement of the nation’s affairs. Therefore, it is essential that governance continues toimprove, to encourage law and order among citizens, engender social harmony and create aconducive business environment in the country.In broad terms, the key, distinguishing features of good governance include the following:(i)Accountability; (ii) Inclusiveness; (iii) Equity and Social Justice; (iv) Observance of the Rule ofLaw and Due Process; (v) Legitimacy of Political, Economic and Administrative Authority; (v)Effective Institutions; (vi) Purposeful Leadership and (vii) Security and Order, and (viii)Transparency. Governance effectiveness is also predicated on effective coordination ofsectoral interventions which are critical to the objectives and targets of the Government.This requires the right blend of persons, at various levels of authority, with the right mix oftechnical, conceptual, political and administrative skills and competencies, to effectivelydrive the engine of governance.Government has emphasized the critical role of good governance to the realisation of thetransformation agenda and the Nigerian Vision 20:2020. Through the initiatives and strategiescontained in the Transformation Agenda, the administration has implemented key economicpolicies including accelerating economic diversification that improved the investment climateand ensuring sustained economic growth, leading to job creation, as well as theimplementation of fiscal policies that support private sector growth. Furthermore, toreposition the public service for better performance and greater service delivery, thegovernment set up the Oransaye Committee on Rationalisation of Federal GovernmentParastatals and Agencies, which has completed its assignment. A key recommendation of theCommittee is to streamline the activities of the MDAs with a view to reducing the financialburden and enable government operate more efficiently and effectively. The government isseriously considering the report of the Committee and will soon issue a white paper on it.To entrench good governance in Nigeria, a number of key objectives identified in theTransformation Agenda that will foster growth include: establishing a system of governance inwhich the citizens are free and able to democratically choose their leaders through credibleand fair electoral processes; removing all obstacles that hinder the effective participation ofcivil groups in governance and institutionalising an accountability framework, to enablegovernment benchmark its effectiveness and allow citizens to monitor governmentperformance.
  • 133. 13310.1 HIGH PERFORMANCE GOVERNMENTThe critical policy thrust of governance is to maximise the benefits the citizenry derives fromgovernance through more effective and efficient use of public resources, proper financialmanagement and fiscal prudence. Emphasis is on: Maintenance of law and order Guarantee of security and safety of lives and property Provision of an environment in which people find happiness and fulfilment; and Elimination of corruption and enhancement of transparency of government operations.10.1.1 HIGH PERFORMANCE CULTUREA Citizens-centric GovernmentCitizens-centric government is about establishing appropriate mechanisms to allow for civicengagement and citizens participation, especially the effective participation of women inpublic policy development and implementation. This is to ensure that apart from the periodicelection of their representatives, people are continually involved in decisions and activitiesaffecting them, directly as individuals or through civil society organisations, such ascommunity based organizations.The government has initiated several policy initiatives to boost stakeholder participation ingovernment. These include the several strategic programme framework plan and plat formsfor public information dissemination developed and deployed by the Federal Ministry ofInformation enable top officials reach out to the people and get feedback for servicedelivery, as well as specific interventions for public enlightenment. Recently, the use ofsocial media enabled the government to provide information to the citizens more widely andcheaply, while also putting in place a mechanism for sustained, interactive dialogue withdiverse interest groups, within and outside Nigeria.Another major initiative to enhance good governance was the Ministerial Platform designed in2012, to promote a national conversation between the people of Nigeria, their governmentand the progress of their democracy. The platform featured all the serving Ministers whopresented their plans and scorecards to the Nigerian people through the media. The platformwas a major pillar of the National Good Governance Programme to promote accountability,transparency and popular participation by citizens in the governance process. It created andfostered synergy and cooperation between pubic officers and citizens to promotedevelopment and service delivery. The Federal Government also initiated in the third quarterof 2012 the National Good Governance Tour, as part of the drive for the promotion of goodgovernance and provision of wide publicity of government development programmes. The touris to monitor major projects that have been completed or are ongoing, as reported by theMinisters at the Ministerial platform. This is a Federal Government’s drive towardsaccountability and transparency in government and building trust between the governmentand its people while ensuring that abandoned projects are revitalised.
  • 134. 13410.2 National Identity Management System (NIMS)Government recognizes the relevance of efficient identity management to national growthand development. In this regard, the NIMS was introduced with a chip-based, secure Nationalidentity card that will provide a means to irrefutably prove the identity of an individualglobally. The NIMS represents a paradigm shift from simple identity card issuance to identitymanagement. It also includes the harmonization of existing identity databases in the publicsector and therefore provides a Universal Identification Infrastructure for the entire country.The deployment of the NIMS infrastructure has commenced in a Pilot Scheme, under whichcitizens enrolment and Issuance of the National Identification Number (NIN) commenced inFebruary 2012. The scheme is expected to deliver a single database system for themanagement of identity in Nigeria and prevent the use of false, multiple, duplicate, or ghostidentities. The specific benefits expected from the scheme include:i. Protect Nigerians from identity theft and fraud by providing easy and convenientmeans of proving identity anywhere in Nigeria and beyond;ii. Improve electoral process in Nigeria;iii. Enhance Law Enforcement;iv. Prevent “ghost” workers phenomenon in the Nigerian public service;v. Ensure the achievement of greater financial inclusion and deepening of the consumercredit system in Nigeria;vi. Optimize the use of government resources and thus enhanced service delivery acrossthe country;vii. Enhance tax and other government revenue generation processes; andviii. Facilitate improvement in Nigerias image.The current Administration has commenced the deployment of components of the NIMS,including Standardised Enrolment System for data capture, in compliance with globalstandards (ISO, ICAO, IEEE, etc.). The National Identification Number (NIN) System andNational Identity Card Issuance System is currently being produced for an initial phase, tocover 13 million Nigerians. Permanent Registration Centres have been established across thecountry and registration is being carried out through a Public-Private Partnership arrangementwith two Front-End Partners (FEPs) to carry out front end enrolment services. In addition, 30registration centers nationwide have been established and are currently carrying outenrolment activities and uploading captured demographic and biometric data into theNational Identity Database (NIDB). Effort is ongoing to scale up these centres to 1,500.Several awareness campaigns have been successfully implemented on social media (facebook,twitter, yahoo groups and a blog) with local chieftains and stakeholder groups in major citiesof all the 36 states of Nigeria.
  • 135. 135The National Identification Numbers and tracking ID numbers have been successfullygenerated and issued to about 300,000 registered persons. Strategic offices have been openedin the FCT and some strategic diplomatic missions like the US and French embassies etc.H.E., Senator Anyim Pius Anyim, GCON, The Secretary to the Government of the Federationbeing enrolled in the NIMS.A pre-enrolment portal that will enable applicants input their demographic data from anyonline system prior to visiting the enrolment centers nation-wide has been created. Theportal is aimed at increasing the number of enrolments per day by providing enrolment self-service which effectively reduces the time required to enroll. The NIMC is also in the processof developing and launching a pre-enrolment portal for mobile devices.10.3 Subsidy Reinvestment and Empowerment Programme (SURE-P)The SURE-P was introduced by the Federal Government to cushion the partial deregulation ofthe downstream petroleum sector. It is a mechanism to mitigate the immediate impact of thepetroleum subsidy discontinuation, especially on the poor and vulnerable in the country andaccelerate economic transformation through investments in critical infrastructure and socialsafety net projects. Social Safety net projects include; Maternal and Child Health (MCH)programme, Community Services/Women and Youth Employment (CWYE) Programme, UrbanMass transit programme, Vocational Training Schemes, Water and Agriculture projects.Infrastructure development projects include; FERMA Preventive Roads MaintenanceProgramme, Niger Delta Development Projects, Roads and bridges, Rail transport projects,ICT, Petroleum/NNPC Projects.Respect for the individual and collective rights of a country’s citizens is key to achieving goodgovernance. Government recognizes this as its crucial responsibility and emphasizes the
  • 136. 136mainstreaming of citizens’ right into the development and implementation of theTransformation Agenda. The National Human Rights Commission has therefore been chargedwith this responsibility and is expected to serve as an extra-judicial mechanism for theenhancement of the enjoyment of human rights in Nigeria. The Commission achieved theimprovement of Nigerias compliance with Human Rights raking from B to A in 2011, which wasa result of several human rights policies domestication in the States, particularly the ChildRights Act, which was domesticated in several States.These initiatives were instituted to raise citizen awareness of government policies andprogrammes, and resulted in an increase in the level of citizens’ awareness of governmentpolicies and programmes to 62 percent in 2011 and from 50 percent in 2010 and a change inattitude of citizens by 56 percent in 2011 from 43 percent in 2010 (Reference FMI and M&Ereport).10.4 Accountability for PerformanceThe current administration recognizes that monitoring and evaluation of its goals and targetsas set out in the Transformation Agenda are crucial to ensuring accountability andperformance. Thus to ensure accountability for performance by public servants, the FederalGovernment has, among other measures, established a specialized Department of M&E at theNational Planning Commission to coordinate the M&E process in the various MDAs. The processculminates in the production of Ministerial ScoreCards and Annual Reports, to enableevidence-based assessment of Nigeria’s performance and enhance service delivery. In thisregard, the 2010 and 2011 Annual Performance Monitoring Reports have been published whilethat of 2012 is in progress. To further illustrate the importance the current administrationattaches to M&E, the Office of the Special Adviser on Performance Monitoring and Evaluationhas been established in the Presidency.The performance management contract system was introduced in January 2012, as a tool forPerformance measurement in the Public Service. The Performance Contracts were signedbetween Mr. President is the Honourable Ministers of the Federal Republic of Nigeria.Performance of Ministers/Ministries is now measured based on agreed Key PerformanceIndicators. This was further cascaded to the Ministries, Departments and Agencies withMinisters signing agreements with their Permanent Secretaries and Chief Executives of theAgencies. For the first time in the history of Nigeria, Ministers were required to makepresentations on their stewardship at the end of the fiscal year 2012 to the Federal ExecutiveCouncil, and through that, to the Nigerian public, highlighting their achievements andchallenges in relation to the signed contracts. This, Administration will take every necessarystep to ensure the sustenance of this initiative in compliance with the requirements oftransparency and accountability and the overall interest of Nigeria.10.5 THE PUBLIC SERVICEThe Public Service serves as the machinery for implementing government policies andinitiatives. It is also a mechanism for regulating the private sector and civil society in the
  • 137. 137realization of nations development goals. As a result of its importance, the public service hasgone through several reforms in, order to properly reposition the sector for betterperformance and efficiency, as the conduct of most government businesses is executedthrough the public service. To ensure effective administration and good governance via thepublic service, the present government has taken some measures to improve the process ofenthroning efficiency, accountability, integrity in government through the public service.Through the several reforms, ghost workers have been drastically reduced, there is a gradualrestoration of professionalism in the service, a genuine attempt to tackle corruption,improved transparency in government transactions and a host of others.10.5.1 Integrated GovernmentIn building an efficient and results-oriented government through the public service, there is aneed to develop synergy between all arms and levels of government. This process is expectedto reward performance and promote cooperation and coordination among the tiers ofgovernment in the overall interest of the nation. This will help to restore the social contractand improve service delivery in the sub-national governments. In achieving integratedgovernment through the public service, it is expected that they adhere to the principle ofseparation of powers among all tiers of government in relation to functions, responsibilitiesand resource allocation, such that they operate coherently and independently; increase thelegislature’s responsiveness to the public needs through effective feedback mechanisms; anddevelop and institutionalize an effective governance framework. Several reforms wereinitiated under the Transformation Agenda that have contributed to enhancing an integratedsystem of government using the public service:i. The introduction of a tenure system in the public service for PermanentSecretaries and Directors has allowed for continuity in the public service with StateCivil servants enjoying more opportunities to crossover to the Federal level due tothe number of vacancies made available.ii. The restructuring of pensions through the Pension reforms in the public service hashelped to improve the performance of public servants nationwideiii. The introduction of the e-governance system is currently ongoing in MDAs,revolutionising the financial system in government and ensuring efficiency andeffectiveness in carrying out government programmes and projects.10.5.2 Right People (Competent and Committed Public Service)The Transformation Agenda envisages a world class and merit-based professional publicservice which delivers government policies and programmes with excellence, discipline,integrity, transparency and loyalty. A public service committed to delivering value for money,with strict adherence to rules and due process, and without corrupt or improper
  • 138. 138considerations. The on-going public service reforms targeted at improving service deliveryand promoting good governance through improved institutionalisation of fiscal responsibility,installation of due process, transparency and accountability in government transactions, andthe restructuring of operations and systems, are critical to the success of the TransformationAgenda. As a result, government efforts were directed towards the successful completion andconsolidation of the on-going public service reforms that include:i. Participation in written examinations to form the basis for appointment of PermanentSecretaries, thereby improving the quality of the public service particularly in thehighest leadership positions.ii. Introduction of the performance evaluation system to objectively and fairly assess theperformance of public officials. This also further incentivises the public servicetowards performance and results, while shifting its scope from the old and inefficientappraisal system to enhance productivity and accountability.iii. Restructuring and rationalization of MDAs to right size the public service and enhanceefficiency in service delivery to Nigerians. This reform, more of which is in thepipeline, has also saved the Federal government a substantial amount of financialresources.iv. Introduction of the Integrated Personnel Payroll and Information Scheme (IPPIS) whichhas helped reduce the number of ‘ghost’ workers and saved the government billions ofnaira. The scheme has been upgraded service wide to all MDAs with improvedtechnological advancements particularly the biometric capturing system to furthereliminate ‘ghost workers’ in the system.v. Some MDAs have embarked on a personnel and payroll data audit leading to thedisengagement of redundant and non value adding public The National Health Insurance Scheme has been introduced to reduce the dependenceon government for funding of healthcare delivery. The scheme has been widelyacknowledged to be a success and is presently being scaled up to accommodatefurther categories of Nigerians.vii. Reinvigoration of SERVICOM in the public service by facilitating the articulation ofclear mandates, vision and mission statements and the implementation or enactmentof the Freedom of Information Act.10.6 Foreign Relations and Economic DiplomacyEconomic diplomacy is integral to defining international relations and national interest.Nigeria’s foreign policy has always had Africa as its centre piece, while globalisation has madeit imperative to continuously adapt foreign policy and diplomacy to match global trends.Since the inception of the present Administration, there has been vigorous pursuit of thepromotion of African unity and national interests. The government articulated andimplemented foreign policy by building the country’s capacity to be a major player in worldaffairs, thereby earning the respect of the rest of Africa. Nigeria has also signed amemorandum of understanding with some countries including Turkey, South Africa, and
  • 139. 139Vietnam to waive visas for holders of official and diplomatic passports to fast track business.This is already yielding results in the area of FDI inflows to the country.Nigeria’s foreign missions have equally been mandated to ensure that the country is promotedas the new frontier and destination of choice for business. In this regard, the number offoreign missions connected electronically to the headquarters grew from 16 in 2010 to closeto 40 as at 2011. Nigeria has also assumed a significant role as a provider, rather than arecipient, of foreign aid. The Federal Government has also pursued a process of reciprocity,particularly in the cases of ill treatment of Nigerians abroad, as witnessed with the Nigeria –South Africa diplomatic impasse over the deportation of Nigerians by South Africa.In response to the increasing clamor of reduction in the number of Nigerian missions abroad,the Government has established SMART MISSIONS. These are diplomatic missions with only theAmbassador, assisted by a few local staff. This is to ensure that Nigeria’s global agenda isserved, while funds are conserved, but without compromising diplomatic standards. As atend-December 2012, SMART MISSIONS are in Bujunmuta, Burundi; Lilongwe, Malawi; Kigali,Riwanda; The Vetican, Italy; Combo, Sri Lanka; Istanbul and Turkey; Doha; Qatar.To foster economic growth and prosperity of the region, Nigeria has continued to play activeand constructive roles in ECOWAS, African Union (AU) and the UN.10.6.1 ECOWASNigeria’s active participation, which has continued over the last two years, in variouspeacekeeping missions in the sub-region is legend. In an effort to ensure peace in the sub-region, the country committed US$5 million to support the peacekeeping mission in Mali in2012, in addition to the mediation role by drafting the adopted Agreement Framework forECOWAS to settle the crisis in Mali. The government also lent its voice and engaged indiplomatic negotiations to prevent the Mali coup leaders from executing their erstwhiledetained President and Prime Minister, as well as facilitating the enthronement of thetransitional government, with full diplomatic and financial support from Nigeria. The Nigeriangovernment has also strengthened the country’s ties with its immediate neighbours: Niger,Benin Republic, Chad and Cameroun10.6.2 African UnionThe present Administration provided the opportunity for Nigeria to be represented at thehighest decision making body of the organization. Nigeria achieved a feat which has hithertobeen elusive, during the period 2003 to 2011, by having a permanent seat at the continentallevel.
  • 140. 14010.6.3 UNITED NATIONS AND OTHER WORLD BODIESNigeria has maintained a robust presence at the United Nations and other world bodies underthe current administration. This is demonstrated by the key positions occupied by Nigeriansnamely: Co-Chair, UN Commission on Life Saving Commodities for Women; Director-General,UNFPA; Member, UN Committee on the elimination of All Forms of Discrimination AgainstWomen (CEDAW); Vice President, INTERPOL Africa; Member, International Law Commission;Judge, ICC; President, Pan African Parliament; Speaker, ECOWAS Parliament; and President,Executive Council, ICAO.Mr. President and Ministers of Foreign Affairs and Environment at the 2012 Rio EarthSummitMr. President, Dr . Jean Ping (fmr Chair AU Commission) and Minister of State II,MFA Dr. Nurudeen Mohammed at AU Meeting
  • 141. 141Similarly, Nigeria in February 2013 won the incoming Presidency of the Community ofDemocracies (CoD) for the period 2015 to 2017. The MFA, in preparation for hosting theSecretariat of the CoD organised a national workshop on strengthening democratic traditionsand institution from April 17th– 18th, 2013.Nigeria occupied the Chairmanship of the D8 during 2011 to 2012. The group comprises offast developing countries of over 1billion people. The D8, at its 2012 Summit, commendedMr. President for steering the affairs of the organization, particularly in ensuring interactionwith the private sector in all Member countries, for the economic benefit of its people,representing over 14 percent of the world’s population.To further improve the image of Nigeria abroad, the Government acquired more properties tobring the total number of government owned properties in the 116 Missions to 73 Chanceries,72 Ambassadorial Residences, 237 staff quarters and 5 Guest Houses.Nigerian High Commission in London, United Kingdom.
  • 142. 142CHAPTER ELEVEN: SUSTAINING ECONOMIC GROWTH THROUGH THE PRODUCTIVE SECTORThe productive sector is a major growth driver of any economy. The sector is critical to theattainment of the Government’s Transformation Agenda in general and for achieving theprojected average GDP growth rate of 7.76 percent during the period. The sector producesgoods and services, generates employment, promotes linkages and enhances value additionalong the value chains of production. It is also the sector that links Nigeria with the globaleconomic community through import-export activities.The main policy thrust of the sector under the Transformation Agenda is to optimise thesources of economic growth for increased productivity and competitiveness. The sub-sectorscovered under this section include: Oil and Gas, Agriculture; Trade and Commerce- ConduciveBusiness and Competitive Environment; Culture, Tourism and Entertainment; Manufacturing;Solid Minerals and Metals, Water Resources and Science and Technology.11.1 Oil and GasOil and gas sector continues to be a major driver of the economy, accounting for over 95percent of export earnings and about 85 percent of government revenue, during 2011 - 2012.The sector contributed 14.8 and 13.76 percent to the GDP in 2011 and 2012 respectively. Italso recorded an increase of 1.047 billion barrels in reserves to 37.119bbs in 2012 from 36.042bbs in 2011. The actual gas flared stood at 20 percent in 2012 as against 24.3 and 25.8percent in 2010 and 2011 respectively.The strategic goals and targets for the sector as highlighted in the TA include: promotion of private sector investment in both upstream and downstream activities ofthe oil and gas industry; deregulation of the industry and promotion of environmentally-friendly oil and gasexploration and exploitation methods; strengthening capacity building programmes, especially in core technical areas provision of funding mechanisms for pre-bidding geosciences and surveys of deepwateroffshore; reduction of gas flared to reduce pollution and increase revenue; promotion of adequate gas supply for domestic use and power generation; diversification of the mode of transportation of petroleum products – pipeline, railwayand road haulage; increasing oil reserves from 36 billion barrels in 2010 to 50 billion barrels by 2013; increasing oil production to 2.31mb/d in 2011 and 2.48mb/d in 2012; raising in-country refining capacity to 0.75 mb/d by 2013 from 0.45 mb/d in 2009; increasing local content in the industry from 35.5 percent in 2010 to 70 percent in2013; increasing proven gas reserves from of 187 trillion cubic feet (TCF) in 2010 to 220 TCFby 2013; and
  • 143. 143 Increasing the use of LPG for both domestic and industrial purposes to 1.0 kg percapita by 2013.Government is committed to promoting PPP in the oil and gas sector through the jointventure operations of NNPC and the oil majors such as SPDC, TOTAL, E&P, Chevron, NAOC,Addax Petroleum being administered by NAPIMS. The Onne Port Complex in Rivers State andINTELS Nig. Ltd pioneering the concept of an integrated One-Stop-Shop oil service centreattests to the workability of a Public Private Partnership (PPP). Abandoned since 1982, theOnne Port complex has witnessed infrastructural investment in sacking areas, warehouse,quay apron and equipment, thus making it one of the world’s largest oil and gas Port. TheOnne Oil and Gas Free Zone is also a success story of a PPP investment.Similarly, six (6) University Upgrade projects have been completed and handed over to thebeneficiaries, while others below 45 percent completion are now at advanced stages of 60percent - 95 percent completion. This include Federal Polytechnic, Ekowe Bayelsa State andMusa Yar’Adua University in Katsina;Under the Amnesty Programme in the Niger Delta, over 1,368 trainees and scholars havegraduated in various disciplines within and outside the Nigeria. About 1,696 are currentlyundergoing training with others numbering 110 to commence training;Federal Polytechnic, Ekowe BayelsaStateMusa Yar’Adua University in Katsina
  • 144. 144PTDF Sponsored Amnesty Training Programme Beneficiaries in South AfricaThe other key achievements of the sector include:i) Implementation of the Gas Master Plan (GMP) leading to rapid development ofthe gas sector and increased industrial and domestic gas utilization. In thisregard, a Gas Pricing Policy has been put in place as an incentive for upstreamgas suppliers and to ensure predictability, affordability and availability of gas;ii) Calabar-Umuahia-Ajaokuta-Kaduna-Kano Gas Pipeline {Trans-Nigerian GasPipeline (TNGP)}: Expansion of the existing western network system i.e. theEscravos Lagos Pipeline System (ELPS) and reinforcement of the Northern andEastern network systems involving: Obe-Geregu: Construction of a 36” x 136 km gas pipeline from Oben toGeregu to address supply deliverability to Geregu power plant and futureexpansion work. The project was completed in November 2011; Itoki-Olorunshogo: A 24” x 31 km gas pipeline designed to supply gas toOlorunshogo PHCN/NIPP power plants has been successfully completed andis currently supplying gas to the plant; ELPS A-Escravos-Warri: Construction of a 24”/30” x 104 km to address theeffective evacuation of stranded gas in Escravos. 80mmcf/d is beingcurrently supplied to the domestic market, while a further 70mmcf/d wouldbe made available to the domestic market by October 2013;
  • 145. 145 Obiafu/Obrikom-Oben (OB3): A 48” x 127 km gas pipeline constructionproject awarded in April 2012. The completion date is 2014; and ELPS 2-Warri-Oben-Lagos: An ongoing project for the construction of a 36”x 324 km gas pipeline to expand the current gas supply from 1bcf/d to2bcf/d by the second quarter of 2013.iii) Trans-Sahara Gas Pipeline (TSGP): As an offshoot of the Trans Nigeria GasPipeline, the 5-phase TSGP currently at the 3rd phase, is expected to becompleted during 2013 – 2016. The overall project to be completed in 2018, isaimed at further transporting gas from Nigeria to Europe through Niger andAlgeria;iv) Cooperation with the Sector Operators;v) Completion of the processing of about of 1,096 km2 seismic data. Phase 5seismic data acquisition commenced in Dec. 2012, while scanning andvectorization of 380,471.69 km 2D seismic section commenced in Oct 2012;vi) Crude Oil production (including condensate) averaging 2.30 Million Barrels perDay has been consistently maintained in spite of oil bunkering and pipelinevandalism;vii) Increased indigenous participation in the oil and gas sector leading to theestablishment of the Ebok Terminal with a current daily crude oil production of7,000 b/d and a plateau production of 50,000 b/d at full capacity;viii) Reduction in gas flared from 25.3 percent in 2011 to about 20 percent in 2012due to government’s increased efforts in implementation of programmes andprojects in Nigeria Gas Master Plan (NGMP) and Gas Revolution;ix) Nigeria Gas Company (NGC) gas sales and transmission throughput grew from722 mmscf/d in 2011 to about 800 mmcsf/d in 2012;x) Completion and commissioning of a 45mmscf/d Non-associated Gas(NAG)/Associated Gas (AG) processing facilities by an indigenous company. Agas flare penalty of $3.5 per 1000scf approved to further deter companies fromgas flaring;xi) Reduction in payment of fuel subsidy of over N2 trillion in 2011 to about N1trillion in 2012 through the introduction of certified cargo inspections,
  • 146. 146insistence on adequate documentation, reduction of the numbers ofparticipants by 67 percent from about 128 in 2011 to 38 currently;xii) Revamping of the Fluid Catalytic Cracking unit (FCCU) in Kaduna refinery aftereight years to boost local refining. Currently the Kaduna refinery is producingat 60 percent of installed capacity and has potential to attain 70 percent butfor product sufficiency;xiii) On-going rehabilitation of the Port Harcourt and Warri refineries are to meet atleast 70 percent of the country’s needs. This will save $3.5billion ofgovernment Forex and enhance payment of taxes to treasury;xiv) Niger Dock fabricated and completed the Abang and Itut oil productionplatforms using 100 percent Nigerian engineering and fabrication. Totalinvestment in facilities upgrade was estimated at above $2billion and hasgenerated over 10,000 jobs;xv) Increase in Local Scholarship Schemes run by Petroleum Training DevelopmentFund (PTDF) from 10 to 19 Universities to enable more participation ofqualified Nigerians. This is due to the positive impact generated by theScheme;xvi) Establishment of the Hydrocarbon Pollution Restoration Project (HYPREP) inJuly 2012 to investigate and evaluate all hydrocarbon - polluted communitiesand sites in Nigeria as well as identify oil spill sites and assess the impact ofspillage on eco system in the Niger Delta region. Documentation of oil spill sitesin 9 States of the region have been undertaken;xvii) HYPREP robust programme has continued to restore the environment forhealthy ecosystem, reduce draw-back in agriculture and fish farming which is amajor component of Small and Medium Enterprise SME and is impactingpositively on the health of the people;xviii) Project Aquila payment efficiency has encouraged increased investments N53billion in the downstream sector resulting in emergence of additional 27 newdepots from 44 locations in 2010 to 71 depots in 2013, 1,000 new retail outletsand 800 new trucks; andxix) Reduction of daily consumption of Premium Motor Spirit (PMS) from over 60 toabout 40 million litres per day in 2011 and 2012 respectively due to improveddocumentation process under project Aquila. This has also led to a reductionin the subsidy gap, following the increase in pump price from 65 to 97Naira/litre.
  • 147. 147Aquila- Operation: Reading with mobile deviceAquila Operation - Server
  • 148. 148Warri – Excravos PipelineSeveral projects in the sub-sector such as the setting up of private refineries through PublicPrivate Partnerships have been stalled or awaiting the passage of the Petroleum Industry Bill(PIB), the PIB would have facilitated the funding and investments in projects such as theAjaokuta–Abuja–Kano Gas Project, Gas supply pipeline to PHCN Delta and the ObiaforObirkum–Oben Gas Pipeline. There are also gaps in the maintenance and efficientmanagement of the four refineries in the country which account for the poor performance ofin-country refining; and in the enforcement of the Gas Flaring legislation of 2004. Inadequatedistribution channels for LPG and high cost of cylinders.Furthermore, vandalization of oil pipelines and crude oil theft have adversely affected oilproduction. Environmental pollution from gas flaring and oil spillage has continued. High costof capital, insecurity, inadequate local capacity and non-passage of the PIB, coupled with theslow pace of compliance with environmental regulations and initiatives by the oil majors tostop gas flare are major challenges. The springing up of illegal small scale petroleumrefineries across the region is yet another major challenge facing the sector.This Administration is institutionalizing a regime of appropriate fiscal incentives (through thePIB) to attract investment in oil exploration while at the same time, ensuring reasonablereturns for the nation. To this end, the drive to increase oil and gas reserves throughaggressive exploration is imperative. The use of local content and the automation of the oiland gas processes, and systems in the industry; and the development of adequate distributioninfrastructure to facilitate efficient delivery of petroleum products to all parts of the countryand the promotion of the use of Liquefied Petroleum Gas (LPG) as domestic fuel are also keyin this respect. Concerted efforts are being made by Government to ensure security in theoperating and business environment in the oil producing communities, as well as ensuring thepassage and implementation of the PIB.
  • 149. 14911.2 AGRICULTUREThe agricultural sector has the largest potential to diversify the Nigerian economy, createjobs, secure food supply, lower inflation and expand foreign exchange earnings for thecountry, with over 84 million hectares of arable land. The Sector has continued its dominancein the economy with its contribution to the GDP averaging 40 percent during 2011-2012. Itcurrently employs about two thirds of the entire labour force and has sustained its position asthe highest contributor to non- oil GDP, contributing 47.17 and 45.49 percent in 2011 and2012 respectively.Given the prospects for the agricultural sector, the Agricultural Transformation Agenda (ATA)was developed. This is aimed at unlocking the enormous potentials in the sector andcomplementing the Government’s Transformation Agenda. The ATA focuses on the keyagricultural value chains which set out to create over 3.5 million jobs in the sector from rice,cassava, sorghum, cocoa and cotton value chains, with many more jobs to come from othervalue chains under implementation. Also, it aims to provide over USD2 billion of additionalincome for Nigerian farmers. In total, the ATA will add 20million MT to domestic food supplyby 2015, including rice (2million MT), cassava (17million MT) and sorghum (1million MT).The key programmes, targets and achievements in the sector are depicted in table 11.1.Table 11.1: Priority Programmes, Targets and AchievementsS/N Priority programmes/projects/targets Achievements1 To secure 900,000MT of dried cassava chipexport contracts by 20152.2 million MT was achieved in 2012 which is 1.3million MT ahead of the plan target.2 To increase national food production by anadditional 20 million MT by 2015, i.e. adding5 million MT of food annually.Within 2012, 8 million MT of food was added todomestic food supply, about 70 percent abovethe target set.3 To ensure sustained supply of high qualityCassava Flour by 2014Over 1.3 million MT of high quality cassava flourhas been provided under the cassava flour policyin 2012.4 To increase use of Cassava and reduceImportation of Wheat by 2012 40 percent substitution of cassava for wheathas been achieved through research andcollaboration with the IITA and FederalInstitute for Industrial Research. Zero duty for all equipment and machineryfor the production of cassava bread.Furthermore, government established theCassava Bread Development Fund, to befunded through the tariff on wheat flour.
  • 150. 150 385 Master Bakers trained across the six geo-political zones in the country. Decline in Wheat imports to Nigeria from anall-time high of 4,051,000 MT in 2010 to3,700,000 MT in 2012.5 To make Nigeria self sufficient in riceproduction and ensure availability ofadequate number of integrated mills by 2014Out of an estimated 1,760,364MT of paddy riceproduction in 2012/2013, at least 1.1 million MTwas harvested from 264,000 ha of dry season ricein 2012 across the 10 northern States of Sokoto,Kebbi, Zamfara, Jigawa, Kano, Kogi, Niger,Bauchi, Kastina and Gombe using the FloodRecovery Food Production Plan. This first evergovernment dry season rice support policy, hasled to the total production of high quality paddyand massive jobs creation as fields are jampacked with workers. About 14 integrated ricemills are planned with a total capacity of over850,000 million MT per annum.6 To provide fertilizer and other agricultureinputs directly to all farmers Access to 1.5 million farmers with subsidizedseeds and fertilizers via mobile phones within120 days of development and deployment ofthe E-wallet system. Increase in percentage of farmers thataccessed subsidized seeds and fertilizers from11 percent under the old system to 70 percentunder the E-wallet system. A savings of N25billion made by Federal Government in 2012. Growth of the number of seed companiesfrom 11 at the start of the currentadministration to 70 Scrapping of contracts for supply of fertilizerand seeds and sale of fertilizer and seedsdirectly to farmers by accredited companiesinstead of government. Scrapping of the system where governmentmonopolized the supply of foundation. Allfoundation seed supply including the lifelineof a viable seed industry, is now fully
  • 151. 151liberalized and handed over to the privatesector.7 To develop farmers database Registration of a total of 4.2 million and 10million farmers in 2012 and 2013 respectively outof the estimated 14 million farmers in thecountry.8 To make agriculture a straight-line businessand not a development project. Commitment of over $8 billion to existingand planned investments in Nigeria’sagriculture, agribusiness and foodindustry by the private sector duringreview period. Expansion of Notore’s plant with a jointinvestment of $1.3 billion by Notore andMitsubishi Corporation. New investorssuch as Dangote Group plan to put up thelargest Urea plant in Africa in Nigeria at $3.5 billion and Indorama is investing $1.2billion in a new fertilizer plant. Development of strong agricultural valuechains for agricultural produce such ascocoa, rice, sorghum, cassava, cotton, oilpalm, cattle, poultry, fish sheep andgoat. Development of 3 agricultural processingzones are on-going.9 To increase agriculture contribution to non-oil export and increase earnings by N128billion by 2012.The non-oil exports continue to experiencesignificant year-on-year growth, with agricultureaccounting for 75 percent of the total non-oilexport revenue, while earnings increased by 759percent respectively by 2012.10 To increase agricultural exports by 364,308MT and increase earnings by N128 billionAgricultural exports and earnings were increasedby 821,588 MT and N759 billion respectively in201211 To reduce agricultural imports by N350billion by 2012Agricultural import was reduced by 857 billionnaira by 2012.12 To create 3.5 million jobs by 2015 2.2 million jobs already created in 2012/early2013Source: FMARD
  • 152. 152Value addition: Cassava bread with 20 percent Cassava Flour & Indigenous Rice ProcessingCompany: Launch of Ebony SupeE-Wallet System reaches millions of farmers with access to seeds and fertilizers on mobilephonesThe key challenges faced by the sector include: climate change, unavailability of loans tofarmers at single digit interest rate, Low level of literacy among farmers and weak extensionservices. Others include insufficient data on farmers and inadequate rural and value chaininfrastructure.Given the pivotal role of agricultural sector development in the economy, steps are beingtaken to address the existing challenges within the context of the Transformation Agenda. Itis also intended to implement the following key measures: provision of an adequateintervention fund in the form of loans at a single digit interest rate; strengthening extensionservices; provision of adequate rural and value chain infrastructure; building an adequatedatabase of farmers and developing their capacity.As a major departure from the past approaches, agriculture is being treated as a businesswith major policy reforms introduced to eliminate corruption in the seeds and fertilizerdistribution. These reforms include the establishment of the Growth Enhancement Scheme(GES) to enhance farm inputs supply, and the set up of staple crop processing zones to attract
  • 153. 153private sector to areas of high production for reduction of post harvest losses, value additionto locally produced crops and to foster rural economic development. The government willalso fashion out an appropriate strategy to buy the enormous volume of the rice produced andensure price stabilisation.11.3. Trade and Commerce SectorThe trade and commerce sector is one of the main pillars of economic growth anddevelopment. The sector, as a catalyst for economic growth, enhances competition, expandsmarkets, creates jobs, raises both national and personal incomes and reduces poverty.Wholesale and retail trade grew by an average of 10.5 percent and accounted for 28.4percent on average of the growth in real GDP in 2011-2012.The targets of the sector include the following:i. Implement ‘Commerce 44’ initiative which is aimed at developing and promotingthe export of 11 agricultural commodities, 11 manufactured products and 11 solidmineral products, with high potential for marketing in 11countries/regions of theworld-using world best practice;ii. Grow non-oil exports by 90 percent over 3 years;iii. Improve Nigeria’s ease of doing business ranking by a minimum of 103 points by2015;iv. Improve Nigeria’s global competitiveness ranking by 75 points by 2015; andv. Increase FDI inflows by 150 percent by 2014;The following key achievements were recorded in the sector during the period of thereview:i. Signing of Foreign Investment Protection Agreement with Canada in 2013 toguarantee the safety of investment of contracting parties in the event ofunforeseen circumstances;ii. Re-engineering of Nigeria’s Commodity Exchange operations with the upgradeof Abuja Securities and Communities Exchange to Nigeria CommoditiesExchange;iii. Reduction in transit time of goods within the ECOWAS sub-region through theimplementation of the Sea Link Coastal Ferry Services Project;
  • 154. 154iv. Formalization of informal trade through the establishment of a Trans-NationalBorder Market at Okerete in Oyo State;v. Improvement in Nigeria’s the global competitiveness ranking by 12 points to115/144 countries in 2012;vi. Amendment of the Corporate Affairs Commission (CAC) Regulations to makethe business registration process more efficient and cost effective, leading topotential annual savings of N1 billion to investors;vii. Commencement by CAC of 24 hour registration of businesses in Lagos and Abujaleading to potential savings of N500 million to investors; andviii. Exportation of 117 products to 103 countries in 2012 through the “Commerce44” initiative.The challenges in the sector include multiple taxation, lack of access to low interest, long-term capital, security, high cost of energy and unstable electricity, lack of capacity in tradein the private sector and lack of development of value chains in export commodities.The Government is however committed to the implementation of reform policies that willguarantee the security of lives and property. It also aims at liberalizing the economy anddiversifying the trade base to build the requisite capacity to support technology transfer,develop value chains in agro-allied and implement the National Tax Policy. The Governmentwill also continue its efforts to renegotiate the Investment Promotions and ProtectionAgreements (IPPAs).11.4. Manufacturing SectorThe manufacturing sector is critical to attaining long-term growth and development. It is alsoessential for the realization of the objectives of the Transformation Agenda. The sectorconsists of basic import-substitution activities, such as bottling, brewing, food and beverages,cement and building materials. Its contribution to GDP averaged 4.18 percent in 2011 and2012 and also attained an average growth rate of 7.60 percent during the period.The key targets for the sector include: Increase contribution of the manufacturing sector to GDP from 4 percent in 2010 to 8percent in 2015; Raise capacity utilization from 54.67 percent in 2008 to 65 percent by 2013; reduce cost of doing business by 60 percent by 2013; increase local content in manufacturing from 22 percent in 2010 to 65 percent in 2013; increase employment share of manufacturing by 15 percent annually up to 2013; increase access of 60 percent of manufacturers to long term credit by 2013;
  • 155. 155 establish a cement technology institute for the training of the manpower required inthe industry to ensure that Nigeria becomes self sufficient in cement production by2014; Achieve 60 percent self sufficiency in sugar production by the year 2015; and Provide a US$3 billion special fund for the rehabilitation of ailing industries andpromotion of core industries for rehabilitation.Government continued to support private sector initiatives leading to the commissioning in2013, a $2.2 billion Western Metal Product Company (WEMPCO) Limited complex at Ibafo,Ogun State with a production capacity of 700,000 metric tonnes of steel annually and creating5,500 additional jobs.President Goodluck Jonathan Commissioning the $2.2bn Western Metal Product Company(WEMPCO) Limited Complex at Ibafo, Ogun State.Other major achievements in the sector are as follows:Wempco Steel Plant and Finished Cold Steel Coils Produced
  • 156. 156i. Development of NIRP with the focus on the entire value chain of sub-sectors whereNigeria has comparative and competitive advantage;ii. Nigeria has attained the position of a net exporter instead of a net importer ofcement. With no import permit issued in the whole of 2012 for cement importation, asaving of over N200 billion in foreign exchange was made. More than two million jobswere also created;iii. Transformation of the Onne Oil and Gas Free Zone with 6 billion USD invested, leadingto the attraction of 150 companies into the zone with 30,000 jobs created to date;iv. With an installed capacity of over 28 million metric tonnes per annum in the cementindustry through the implementation of the Backward Integration Policy, Nigeria nowhas the largest cement plant in the world; andv. Reduction in the volume of sub-standard goods from 85 percent to 60 percent.Honourable Minister of industry Trade and Investment inspecting some locally manufacturedproductsProgress in the manufacturing sector in Nigeria has not been optimal, given that the sector ischaracterised by a myriad of challenges. These include poor power supply, high cost of inputsand of doing business, multiple taxation, infrastructural deficit, low access to finance,particularly long term finance, insecurity, low quality of made in Nigeria goods and weak andpoor information flow.The stronger implementation of the power sector reform being achieved will have asignificantly positive effect on manufacturing in Nigeria. Equally, the National IndustrialRevolution Master Plan and the National Integrated Infrastructure Master Plan (NIIMP) arebeing developed to pave the way for addressing the perennial problems of the manufacturingsector.11.5. Solid Minerals and MetalsNigeria is endowed with several varieties of solid minerals such as metallic minerals, mineralfuel, gemstone, precious metals and dimension stone. The sector has the potential togenerate employment and wealth for over five million people. Currently the sector employs
  • 157. 157about 450,000 directly and two million indirectly. The sector’s contribution to GDP averaged0.37 percent during 2011 – 2012. It is a rapidly growing sector with a double digit growth rateaveraging 11 percent during 2011 and 2012.The targets of the sector include the following:i. Empower the Nigerian Geological Survey Agency (NGSA) to prepare 20 maps of1:100,000 per annum (with accompanying literature and bulletins) to achieve 100percent coverage by 2020);ii. produce 3 million tonnes of liquid steel annually by 2013;iii. achieve 30 percent compliance with global environmental best practice by 2013;iv. achieve enhanced capacity to supply 50 percent of the skilled manpower required forthe mineral and metal sub-sector;v. coal-fired plants to contribute 30 percent to power generation by 2013; andvi. increase the level of bitumen production to meet local demand, especially in the areaof road construction.The Government’s effort at attracting foreign direct investment (FDI) to the sector hasstarted yielding dividends. During the review period, not less than 50 companies from variouscountries have signified interest to invest in this sector. Other achievements in the sectorinclude the following:i. Launch of four 1:100,000 geological maps {Sheets 111 (Goniri),153 (Maru),220(Igangan) and 221 (Oyo)} and One (1) 1:250,000 sheet 49 (Shaki) in 2012;ii. Facilitation of the development of a new coal mine (Eta-Zuma Coal Mine), bringing totwo the number of large coal mines operating in the country by end 2012;iii. Rehabilitation work of 30 percent undertaken on Nigerian Iron Ore Mining Company(NIOMCO), Itakpe beneficiation line 2, as well as installation work of 90 percent on theNIOMCO super-concentrate plant in 2012;iv. Training of the first batch of 34 students of the Nigerian Institute of MiningGeosciences (NIMG) in practical oriented programmes comprising Post GraduateDiplomas in Mineral Exploration, Mining and Minerals Engineering;v. Increased the number of mineral titles issued from 2,476 in 2011 to 3,616 in 2012;vi. Increased Mineral Production by 143.6 percent in 2012 from an increase of 21 percentin 2011;vii. Increased production of limestone, as part of non-metallic(industrial) mineral output,from 24.79 million tonnes in 2011 to 58.41 million tonnes in 2012;
  • 158. 158viii. Increased production of Metallic Minerals like iron ore from 11,232.44 tonnes in 2011to 836,250.00 tonnes in 2012,ix. Increased the production of carbonaceous minerals from 51,284 tonnes in 2011 to301,344 tonnes in 2012x. increased the production of scrap iron based steel from 950,000 tonnes in 2011 to 1.50million tonnes in 2012;xi. Increased the number of Environmental Impact Assessments conducted/reviewed from35 in 2011 to 105 in 2012;xii. Increased the number of environment audit review and compliance monitoring carriedout in mines and quarries from 35 in 2011 to 168 in 2012; andxiii. Increased employment in the sector from 350,000 in 2011 to 1,254,200 in 2012.
  • 159. 159The key challenges facing the sector include illegal mining activities and smuggling ofminerals, low level of geosciences information coupled with lack of legal and regulatoryframework as well as inadequate mining infrastructure. Government is however makingconcerted efforts to address these issues through improved funding, generation of additionalgeosciences data and promotion of the development of industrial minerals for downstreamindustries. In addition, a roadmap for sustainable development of the minerals and metalssub-sector has been approved for implementation.11.6 Water ResourcesWater is a cross-cutting resource, impacting on the real sector and social life, includinghealth and sanitation, agriculture, transportation, environment, power, etc. Water resourcesare required for irrigation, power generation and industrial and drinking purposes, amongothers. It is estimated that the nation has a water resources potential of 319 billion cubicmetres, consisting of surface water, estimated at 267 billion cubic metres and ground water,estimated at 52 billion cubic metres. Despite this abundant endowment, access to andutilization of safe water, remain a challenge.The following targets were set for the sector during the period 2011-2015: Increase water supply access from 58 percent to 75 percent by 2015; Increase national improved water supply coverage from 47 percent to 50 percent by2013; Increase urban improved water supply coverage and minimum basic human waterrequirements from 65 percent to 70 percent and 60 percent to 80 percent respectivelyby 2013; Increase small town supply coverage and minimum basic human water requirementfrom 65 percent to 70 percent by 2011; Increase rural water supply coverage and minimum basic human requirement from 30percent to 40 percent by 2013; increase available reservoir capacity from 34b m3to 35b m3by 2015; and increase irrigable land from 80,000ha to 150,963 by 2015The sector has recently witnessed a resurgence of activities. For instance, the dam projectswhich were hitherto abandoned, have now been reactivated and are now at various stages ofrehabilitation for supply of bulk water to treatment plants, generation of hydro electricity,provision of water for irrigation farming and fisheries to boost food security.
  • 160. 160The projects and achievements of the sector during the period under review are as depictedin Table 11.2.Table 11.2: Projects and Achievements in the Water Sector during 2011-2012.Mr . President with the Hon. Minister FMWRlistening to progress report on the KashimbilaHydropower ProjectAn overview of Kashimbila Hydropower ProjectSN Project Impact/Achievement CompletionStatus (percent)1. The Greater Makurdi Watersupply scheme.50 million litres per day to cover nearly onemillion people.1002. Galma Dam (Water Supply)/ Kaduna state186 million cubic metres for potable watersupply for over twenty-three (23)towns/villages in Six (6) Local GovernmentAreas in Kaduna State85Goronyo Dam EmergencySpillway Repairs (WaterSupply)/Sokoto state60,000cubic metres water treatment plant tocover 400,000 people.Kashimbilla MultipurposeBuffer Dam Project(WaterSupply) / Taraba stateWater Supply with treatment plant capacity of60, 000m3/day67Central Ogbia RegionalWater Supply Project inOtueke of Bayelsa StateProvide Potable Water and sanitation in 16Communities in central Ogbia LGA, Otuekeand its environs.35Mangu Water SupplyProject / Plateau stateProvision 10 million litres per day to servecommunities of Gindiri and Mangu township.100
  • 161. 161Northern Ishan WaterSupply Project / Edo stateThe project has capacity of producing 9million litres per day to serve communities ofUromi, Ubiaja, Ugengu, Ugboha and Iguben.1004. Drilled 545 hand-pumpedwells and 836 motorisedboreholes across thenation, thus increasingAccess to water in rural communities to about2 million people1005 Bakolori Irrigation Project:This project is to irrigate23,000ha.Over 5,964.77ha of rice was cultivated in thedry season and 38,175 metric tons of rice, 40metric tons of maize, 18 metric tons ofcowpea, 1,206 metric tons of sweet potato, 5metric tons of groundnuts, 800 metric tons ofsugar cane and 1,575 metric tons ofvegetables have been produced.55South Chad IrrigationProject (SCIP)Covers 67,000ha of land 80Galma Dam(irrigation) /Kaduna stateProvide a reservoir capacity for irrigation of2,500 ha.85Goronyo Dam emergencyspillway repairs(Irrigation)/Sokoto state2000 ha irrigation 100Rehabilitation of existinginfrastructure at JibiaIrrigation project / KatsinastateMore area under irrigation carried outrehabilitation work on dilapidated irrigationinfrastructure to provide opportunity for Morefarming families to be empoweredeconomically.80Kashimbilla MultipurposeBuffer Dam Project(irrigation) / Taraba stateIrrigation of 2000ha of farmlands 6711 Seven major dam projectswith a combined storagecapacity of 2,269 millioncubic meters have beencompleted. These areGurara, Owiwi, Sabke,Owena, and Shagari dams.The raw water from these dams are to be usedfor irrigation, water supply, hydropower,fisheries etc100Kashimbilla MultipurposeBuffer Dam Project /Taraba stateConstruction of Hydro power plant to generate40MW of electricity67Feasibility Studies forhydro power installation atOyan, Ikere Gorge,Bakolori, Dadin Kowa,Shows potentials for hydropower generationwith a total capacity of 3,557 MW.100
  • 162. 162Source: FMWRSome of the recent activities in the water resources sector are depicted below.Tiga, Kiri, Jibiya, ChallawaGorge, Owena, Doma,Waya, Mgowo, Zobe,Kampe, Kashimbilla,Ogwashiku, Zungeru andMambilla.Assessment of Waterreleases from thedischarge along Benue andNiger RiversEstablishment of the maximum flood levels allover the country recorded for decisionmaking.
  • 163. Galma Dam Goronyo DamCentral Ogbia Regional Water Supply Project inOtueke of Bayelsa StateRaw water Intake at Northern Ishan Water SupplyProjectTreatment Plant at Northern Ishan Canal Structure at Jibiya Irrigation Project
  • 164. 164164Over the years, partly because of increasing population, urbanization, and legal, regulatoryand institutional challenges, the sector has not been able to attain its optimal potential. Inaddition, the budget implementation cycle does not favour the water sector, because most ofthe projects are executed during the dry season and have longer gestation periods than onebudget cycle. This leads to project abandonment and cost escalation, arising from reviews ofproject cost.Giant strides are being made to address the capital intensity nature of the water sector,through the exploration of a robust framework for Public Private Partnerships and/or otherinnovative funding mechanisms, to achieve the set targets. Alternative options, including theprivatization of the water supply that are pro-poor, are desirable to boost the sector.11.7. Culture, Tourism and EntertainmentNigeria has the potential to significantly attract foreign exchange earnings and generateemployment for sustainable economic growth and development through the identification,development and marketing of its diverse cultural, tourism and entertainment opportunities.The sector has made considerable progress, especially in the areas of entertainment – filmsand music. However, there is room for improvement, considering the immense potentials ofthe industry.President Jonathan and First Lady, Dame Patience Jonathan flanked by Akwa Ibom stateGovernor and other dignitaries, during a Presidential dinner to celebrate Nollywood @20
  • 165. 165165Hon. Minister of Tourism, Culture & National Orientation during Nigeria’s Cultural WeekShowcasing the Nations Rich Cultural Heritage in Beijing, China in December 2012.The key targets and achievements in the sector are articulated in Table 11.3.Table 11.3: Key targets and Achievements in Culture, Tourism and National OrientationS/N Targets Achievements1. Upgrade AbujaCarnival tointernationalstandards.The annual Abuja Carnival is held every November. Fourcountries participated in the 2011 edition. That of 2012,which held from 24th – 27th November, 2012, attracted theparticipation of seven countries from Asia, South America,Europe, Caribbean and other African countries with over 2000tourists from all over the world.2. Development of 2UNESCO WorldHeritage sites inNigeria: Osun Oshogbosacred groove in Osunstate & Sukur culturallandscape in Adamawastate. (Contribution toUNESCO funding).In accordance with UNESCO requirements and guidelines, theManagement Plan for Nigeria’s first World Heritage Site atSukur, Adamawa State was reviewed and updated taking intoconsideration the on-going development of the site.3. Culture & NOAProjects(Reorientation andi. Unveiling the slogan ‘Do the Right Thing – TransformNigeria’ in May 2012. The programme, which is plannedto be executed on a sustainable basis, is expected to
  • 166. 166166Promotion of Values) promote positive attitudes and culture in Nigerians, forthe attainment of national goals and objectives, insupport of the Transformation Agenda.ii. Through a weekly 30-minutes interactive radioprogramme – ‘The Mobiliser’ a platform for discussionson value re-orientation, peace and security relatedmatters to promote national peace, while raising thepublic’s security alertness, in addition to other topicalissues, has been established. Similar production of amulti-episode TV drama series – Integrity Matters -aimed at raising integrity standards in our national life,is also on course.iii. Campaign Against Filth and Environmental Degradation:This is targeted at ridding the environment of the filthand menace constituted by indiscriminate littering ofpolythene materials used as water sachets, foodwrappers etc.iv. Political and Civic Education followed by a monitoringand evaluation of the various elections, particularly thesubsidiary gubernatorial elections in Kogi (December 3,2011), Adamawa (February 4, 2012), Bayelsa (February11, 2012), Sokoto (February 18, 2012), Cross River(February 25, 20112) and Kebbi (March 31, 2012) amongothers.4. Train an additional10,000 Tourism andHospitality Workers by2013Various centres of the National Institute for Hospitality andTourism Training in Abuja, Bauchi, Kano, Osogbo, Benin,Enugu, Kaduna and Lagos where Certificate, Diploma and PostGraduate Courses in various specialties have recordedremarkable appreciation in application and admissions intovarious study programmess.5. Increase thecontribution ofcultural industriesfrom 2 percent in 2007to 70 percent by 2013Three Cultural Industry Centres were built in 3 geo-politicalzones of Nigeria in Taraba, Ogun and FCT to provide physicalinfrastructure for cultural activities to thrive in the rural areasas well as to serve as a one stop shop for cultural goods andservices.6. Increase the Numberof Registered Hotels inNigeria from 1,700 in2008 to 2,500 by 2013In collaboration with the security agencies, the registration ofhotels and other hospitality establishments nation-wide isbeing carried out, through the services of fifteen consultants.Each of these consultants further engaged not less than tenfield officers. By extrapolation, about 150 additional jobs werecreated from the engagement of consultants for theregistration exercise alone.
  • 167. 1671677 Achieve a 10 percentGrowth Rate in FilmProduction by 2013Through the N3 billion grant recently released for thedevelopment of the movie industry, the desired growth will beachieved.Source: FMCT&NO/NPCOther achievements include:i. The 1st and 2nd creativity week were held in Abuja in April 2012 and 2013, to discoveryoung talents in the creative sector and encourage the youths to develop inherentabilities for self reliance and sustainability;ii. Rehabilitation of the National Theatre, Iganmu, Lagos with new banquet chairs, ICTand computer equipment, sound booths, mixers, dimmers and lights, among others;iii. Sustained participation in major international tourism fairs such as: World TravelMarket (WTM), Excel, London, November, 2011 FITUR, Spain-January 18-22, 2012; ITB,Berlin, Germany – March 7-11, 2012 Arabia Travel Market, Dubai, UAE, April 30 – May3, 2012 etc.iv. Supported 96 cultural festivals nationwide between May 2011 and April 2012, as wellas organized the pre-independence concert in Lagos on September 30, 2011 with theaim of projecting Nigeria as a safe and peaceful country to the Internationalcommunity.Some Tourists at Obudu Cattle RanchInternational Exhibition in London
  • 168. 168168The pictures of some of the events carried out in the sector are shown below.Aside from the issue of poor perception by the public, achievement of the tremendouspotentials in the sector for job and wealth creation has been stunted, due to poor funding,resulting in low capacity building and poor data collection for planning and decision making.Other challenges affecting the sector are poor inter-agency collaboration on tourismstatistics, lack of national endowment for the arts, security and terrorism issues, as well asthe dearth of tourism infrastructure, exhibition and convention centres, art galleries,museums, wildlife parks, etc.The Government is strongly committed to developing the sector, through a number ofpragmatic steps to reposition Nigeria as the preferred tourism destination and cultural capitalin Sub-Saharan Africa, offering diverse, world class tourism products, geared towardsincreasing tourising contribution to the country’s GDP. Developing and funding of tourism andcultural quick-win projects and programmes will further hasten the growth of the sector.Strengthening of inter-agency collaboration to develop a database on tourism statistics andSome of the Cultural Dance during Abuja Carnival 2012April 2013 Creativity Week in Abuja
  • 169. 169169provision of an intervention fund to support ecotourism, capacity building, technologydevelopment and marketing are also critical for transforming the sector. The currentAdministration’s release of the sum of N3 billion grant to address the creativity andtechnology challenges in the industry is a demonstration of the Government’s commitment toadvancing the growth of the sector.11.8 Science, Technology and Innovation (ST&I) SectorThe ST&I is an important vehicle for achieving sustained growth and national development.Nations achieve industrialization through the use of applied technology, Research andDevelopment (R&D) and innovation. The Government recognizes the importance of theknowledge-based skills required in the sector and has designed strategies to strengthen theinnovative capacities of the nation’s scientists, engineers and technologists. TheGovernment’s emphasis on STI will help expand the production frontiers of the economy. Thekey targets and achievements of the sector are in Table 11.4.Table 11.4: Key targets and achievements of the sectorS/N Targets Achievements1. Achieve technologicalcapability for producing15 percent of theprocess equipment usedin small and mediumscale industries by theyear 2013i. 13 percent increase in capacity for design andfabrication of machines and equipment whichincludes the production of cylinder heads, rockercovers, carburetor parts, etc;ii. Transfer of improved post harvest processingtechnologies to SMEs and establishment of samein the geo-political zones of the country. 16 no. of industries using the newand improved leather tanningtechnologies. 5,200 no. of solar, 6 no. windalternative energy projectsundertaken to improve the nationalelectricity supply situationespecially in off-grid locations toenhance spin-off of businessactivities.2. Achieve 10 percenttechnologicalcapabilities for sourcing20 percent industrial rawmaterials locally by 2013i. 26 percent reduction in cost of building materialsand equipment for housing deliveryii. Production of cordials and concentrates fromvarious fruits, such as pineapple, orange, cashew,banana and guava.
  • 170. 170170iii. 12 percent increase in tsetsefly human and animaltrypanosomiasis controlled and eradicated3. Achieve R&D investmentof 1 percent of GDP by2013i. 4 no. of Intellectual Property & TechnologyTransfer Offices were established;ii. Secured international cooperation and investmenttowards the actualization of a the "SHESTCOSilicon Valley" project;iii. Enhanced research and development througheffective monitoring and evaluation, as well ascoordination.4. Achieve Patenting of 5percent R&D outputsfrom 0.1 percent by 2013i. 4 no. of biotechnology products delivered to helpin the improvement of crop varieties (e.g. rice,cassava and some tree crops), increased cottonyields/production in the country, rapidregeneration of plantlets for agricultural,industrial and desert control using TemporaryImmersion Bioreactor system (TIBs);ii. 6 no. natural medicinal products registered.5. Achievecommercialization of 5percent of the PatentedR&D outputs by 2013i. 32 no. of businesses created through R&D outputsand 95 no. of industries using R&D products;ii. 26.6 percent increase in the number of conservedand identified medicinal plants. This will mitigatethe cost of medication by creating alternative andcheaper sources of medication;iii. Popularisation of the concept of the Triple Helixmodel of Innovation in our nationaldevelopmental strides. Nigeria stands to gainfrom bringing together the public; private andacademic sectors,6. Attain 20 percentScience and Technologybased competitiveworkforce by 2013i. 9,767 no. of Science Laboratory Technologistsregistered and 300 no. of Science Laboratoriesaccredited. This helps to eliminate quacklaboratory Technologist/Scientists and therebyreduce the cost of hiring foreign laboratory
  • 171. 171171experts. 60 no. of incubates trained andgraduated through technologyincubation; The framework for the NationalSystem of Innovation (NSI)developed through stakeholdersparticipation. The NSI will driveinnovation through the Federal,Sectoral (MDAs), Regional, Stateand Local innovation systems.ii. 34M no. of users of satellite resources to enhancetransformation in key sectors of the economysuch as agriculture, food security, urban and ruralplanning, education, infrastructural monitoring. 4no. categories of aerial maps were producedthrough satellite imageries. This has boostedNigerias capability for natural resourcemanagement, disaster relief through the DisasterMonitoring Constellation, forecasting and dailymonitoring of weather and identification ofclimatic and environmental hazards over Nigeriaand indeed globally.Plantlet Multiplication using the TemporaryImmersion Bioreactor systemThe Production of Growth Induced Transgenic Tilapia:Photomacrograph showing non-transgenic (top) andtransgenic (bottom) sizes of Fish.
  • 172. 172172The key challenges of the sector include inadequate skills in technology services; inadequateinstitutional capacity; weak collaboration among government agencies, industry and researchinstitutes; low investment in R&D; and lack of interest in implementing research findings byentrepreneurs. Others include: inadequate incentives to entrepreneurs to promote prototypesmade by various research institutes and absence of database on research findings.Going forward, the government plans to deal with these challenges by inaugurating theNational Research & Innovation Council (NRIC) to facilitate collaboration on Federal,Regional, State and Local level innovations. In addition, a National Research & InnovationFund (NRIF) will be established, to ensure availability of adequate funding and tocommercialise research & development outputs. The Government will also entrench theconcept of the Triple Helix model of innovation to re-invigorate and focus on science,technology, innovation and R&D in tertiary institutions, and research institutes, to strengtheninnovation and knowledge-based product development and services. Equally, it will establishthe Silicon Valley project to develop the solar technology value chain, in order to achieve asustainable energy mix.Satellite Calibration completed and Mission Control Centre installed in Abujato operate NigeriaSat- 2 & NigeriaSat-X
  • 173. 173173CHAPTER TWELVE: PROVISION OF QUALITY AND AFFORDABLE INFRASTRUCTUREInfrastructure is key for economic growth and development. It also enhances productivity andcompetitiveness. Nigeria’s lack of competitiveness and low indices of human development canbe largely attributed to inadequate infrastructure development. Despite Nigeria’s hugeearnings from oil exports for over four decades, its infrastructure remains inadequate,obsolete and poorly managed. This is a major challenge, given the rising population growthand urbanization.The country’s challenges in the delivery of critical infrastructure continue to impactnegatively on investment and capital inflow into the country. Nigeria requires capitalinvestments of over US$ 14.2 billion annually over ten years, excluding routine maintenanceand operating costs to close this yawning infrastructure gap (World Bank Study, 2011). Inaddition, to the government role, the achievement of adequate infrastructure requiresprivate sector participation, which has been limited, due largely to weak legal, institutionaland regulatory frameworks.A number of factors have contributed to the deterioration of infrastructure, includingunderinvestment, poor governance, poor maintenance culture, population explosion andneglect of urban and regional planning. The deterioration has been most acute in the powersector with perennial shortages in generation, transmission and distribution. Thetransportation system comprising road, rail, air and water remains largely under-developed,without the intermodal linkage to make the movement of goods and persons cheap and easy.Over the years, Nigeria has developed a number of sector-specific infrastructure master plansto address these challenges. These sectoral master plans, however, were developed in silos,without connection to one another. Therefore, to ensure a coordinated approach toinfrastructure development in the country, the current Administration has initiated thedevelopment of the National Integrated Infrastructure Master Plan (NIIMP). This is a 30-yearplan to be implemented using 10-year operational plans and 5-year medium-term plans.The critical infrastructure given priority under the Transformation Agenda include Energy,Transportation, Information and Communications Technology (ICT) and Housing and UrbanDevelopment.12.1 PowerThe power sector has the highest potential to propel the economy to the desired level ofgrowth and development, with multiplier effects on all sectors of the economy. Over the lasttwo decades, there has been little investment in the power sector, with electricity generationranging between 3,500 and 4500 megawatts. The broad vision of the current Administrationfor the power sector, as highlighted in the Transformation Agenda, is to ensure adequate andsustainable power supply in all sectors of the economy. To help achieve this broad vision, aRoadmap for the power sector was developed and is being vigorously implemented.
  • 174. 174174In order to achieve the country’s targets for the power sector, a projected investment size ofN2.55 trillion is required during 2011 to 2015. This would cover investment in four majorareas of power generation, transmission, distribution and alternative energy. Additionalinvestments would also be made to rehabilitate the hydro-power stations during the period.The key targets for the power sector in the Transformation Agenda include: increase available generation capacity to 5000 MW by 2011, 6000 MW by 2012 and16,000MW by 2015; expand and strengthen the transmission network to wheel 16,000MW of power by2015; increase electricity access to 50 percent by 2015 from the current 40 percent; achieve electricity generation mix of 11,800MW gas-fired plants and 4,200MWrenewables; increase the average load factor in the power sector from 31 percent to 50 percent in2015; develop policies that would encourage the local manufacture of material inputs forthe power sector; achieve billing and collection efficiencies of 95 percent and 80 percent respectivelyfor power consumed by 2015; finalize project documents for the development of coal fired power plants by 2012; enhance energy security by commencing the development of large hydro power plantssuch as Mambilla and Zungeru by 2013; achieve a 20MW contribution from wind energy to the nations electricity generationmix by 2015; and achieve a 10 percent contribution by renewable energy to the nations powergeneration mix by 2025.The major achievements recorded in the power sector are: Stability in electricity generation and distribution. Power generation increased from3,514MW in 2011 to 4,500MW as at December, 2012; (NIPP contributed 1,650MW) lessthan half the plan target of 10,000MW by 2012. Substantial progress has been madetoward optimal electricity generation mix. A roadmap is being implemented leading to the following:- Unbundling of the PHCN into six Generating Companies (GenCos), one TransmissionCompany and 11 Distribution companies (DisCos);- Licensing of 34 IPPs, though only three (AES Barge Limited, Okpai and Afam VI)have commenced operation and were added to the national grid;- Establishment of the Nigerian Bulk Electricity Trading (NBET) Plc with its Boardinaugurated;- Review of the electricity Multi-Year Tariff Order (MYTO) with a view to making theelectricity tariff cost-reflective to attract private investment in the sector;
  • 175. 175175- Granting Management Contract for the management of the Transmission Companyof Nigeria (TCN) to a private sector operator in September, 2012.- Provision of Partial Risk Guarantee to FGN and NBET Plc by the World Bank tofacilitate private sector investment in the power sector- As at the end of 2012, the Bureau for Public Enterprises (BPE) has concluded theprivatisation of 10 DisCos and five GenCos. Establishment of a N300 billion Power and Aviation Intervention Fund (PAIF) by theCBN to provide concessionary long-term credit for power and aviation projects. A totalof N181.42 billion has been disbursed for 36 projects, the disbursement covered 15airline projects worth N90.92 billion and 21 power projects amounting to N90.50billion. Also, a long-term, single digit interest rate investment fund was established in2011 to encourage private investment in the power sector; Strengthening of the NERC to provide regulatory oversight and guidance for the newentrants into the electricity market; and The rapid expansion in the installation of prepaid metres, which increased the averageload factor and enhanced billing and collection efficiency estimated at 70 percent atthe end of 2012;These achievements were set back by vandalization of electricity power installations, whichgreatly hampered the efficiency of the sector. Inefficient transmission due to inadequatecapacity of the transmission network has led to substantial losses that further reduced powersupply. Equally, inadequate gas supply to power plants contributed to the low powergeneration.The current administration has taken bold steps to address these challenges. These includethe privatization of the generation and distribution segments of the power sector for greaterefficiency and productivity and to attract more investment in the sector; the adoption ofalternative energy sources to further reduce the demand for electricity and increase availableenergy mix.12.2 TRANSPORTATIONThe role of transportation in the economic, political and social development ofany nation cannot be over-emphasized as it is the sector that connects all theother sectors of the economy. The overaching goal of the Transport sector underthe Transformation Agenda is to develop an adequate, safe, environmentallysound, efficient and affordable, integrated transport system within theframework of a competitive national and international market economy.
  • 176. 176176The transport sector, comprising road, rail, pipelines, water, air and road services,has experienced marginal growth over the years. The pace of growth improvedslightly from 6.71 percent in 2010 to 6.79 percent in 2012. In terms ofcontribution to GDP growth, transport accounted for 2.67 percent and 2.66percent in 2010 and 2012 respectively. The slow pace of growth in the sector islargely attributed to the poor state of infrastructure. Therefore, significantimprovements are required to revitalize the sector, through careful planning,prioritization and faithful implementation.12.2.1 RailwaysPrior to 2010, most of rail tracks were dilapidated and not functioning. In a bid toturnaround the railways nationwide, the Federal Government articulated a 25-year strategic vision for the rail sector, with milestones to be implemented inthree stages. The broad targets of the rail sub-sector are the completion of therehabilitation of the existing narrow gauge and construction of new standardgauge rail lines, and construction of extension to link all State Capitals andcommercial centers.Track Rehabilitation Work on the Eastern Line (Aba)During the period under review, the rehabilitation ofover 90 percent of the entireexisting narrow gauge lines throughout the country are at various stages ofcompletion.Hon. Minister Flagging off Lagos to Kano TrainKilometer of Narrow Gauge RehabilitatedTrack Rehabilitation work on the Eastern Line (Aba)Before After3President Flagging off Lagos to Abeokuta Train
  • 177. 177177Other major achievements in the rail transport sector are: Rehabilitation of the main Western line: Lagos – Kano, 1,124km is completed andfunctional, while the Eastern line Port Harcourt-Maiduguri 1,657km is expected to becompleted before the end 2013. Rehabilitation of sidings and loop lines along the Western line, including connection tokey industrial locations within Apapa, 74 stations and branch lines between Lagos andKano, the 300 meter link between the Apapa port complex and the national line andthe spur line to the Kaduna power plant complex will commence by the end of June2013 and will be completed by end of 2013. Completion of the construction and the rehabilitation of the Itakpe-Ajaokuta-WarriStandard gauge rail line is at 77 percent completion with the entire track laid. It isexpected to be completed in 2014. Construction of Abuja (Idu)–Kanduna Standard Gauge rail line is in progress and hasreached 60 percent completion. It is expected to be completed by the end of 2014. Construction of Lagos to Ibadan standard gague (double track) 2 x 180 Km has beenawarded and will commence this year. Currently, feasibility studies are on-going to create additional corridors for thestandard gauge rail system. The studies are expected to be completed by the third quarter ofthis year and their reports will amongst others consist of Outline Business Cases which will bemade available to potential investors for the development of tracks under Public privateMinna to Kaduina TrainsStudent Excursion Train
  • 178. 178178Partnership initiativeOngoing FeasibilityStudies onNew Railway Corridors1S/N TITLE1 Feasibility Studies/Consultancy for Standard Gauge Line on East – West Rail Line Lagos - Shagamu-Ijebu Ode-Ore-BeninCity, (300km).2 Feasibility Studies/Consultancy for Standard Gauge Line: Benin-Agbo-Onitsha-Nnewi-Owerri-Aba withadditional linefrom Onitsha-Enugu-Abakiliki (500km)3 Feasibility Studies / Consultancy for Coastal Rail Line in the Niger Delta Region: (Benin-Sapele, Warri - Yenagoa,PortHarcourt -Aba-Uyo-Calabar-Akankpa-Ogoja-Obudu Cattle Ranch)4 Feasibility Studies/Consultancy for Standard Gauge line: Lagos – Ibadan – Oshogbo – Baro – Abuja (High Speed615km)5 Feasibility Studies/Consultancy for Standard Gauge line: Ajaokuta (Eganyi)-Obajana-Jakura-Baro-Abuja withadditional linefrom Ajaokuta toOtukpo (533km)6 Feasibility Studies/Consultancy for Standard Gauge Line: Zaria-Kaura Namoda-Sokoto- Illela -Birnin Konni inNigerRepublic (520km)7 Feasibility Studies/Consultancy forStandard Gauge RailLine: Eganyi(Near Ajaokuta) -Lokoja-Abaji -Abuja Federal Government of Nigeria has invested heavily in rolling stock and equipment,and in the Procurement and rehabilitation of locomotives, wagons and coaches. Legal and institutional framework reform, to provide the requisite enablingenvironment for growth and competitiveness of the sector. The improved policy andregulatory environment achieved through this framework would make possible the
  • 179. 179179concession of freights and passengers services. The following Legislations (Bills) arebeing processed to allow for more effective Private Sector participation: The Nigerian Railway Authority Bill The National Transport Commission Bill The Ports &Harbour Bill and The National Inland Waterways Authority Bill The embargo on rent / lease of Nigerian Railway Corporation’s land and landedproperties has been lifted and redevelopment of the Nigerian Railway Stations throughPublic Private Partnership is being packaged. The guidelines will soon be published.Launching of 20 Pressurised Tank Wagon Unloading of Lafarge Cement at Minna Station
  • 180. 180180Resumption of Passenger ServicesThe NRC operates some services where existing infrastructure & equipment permit: Lagos - Kano Express Train Services , Once per week. Offa – Kano Express Train Services once per week. Intra –city Mass Transit Lagos Mass Transit Train (16 Trains Per Day- an average of 16,000 passengers daily) Kaduna Intracity Mass Transit Train (10 Trains Per Day- an average of 10,000passengers daily) Kano – Challawa Mass Transit Train (6 Trains Per Day): Temporarily suspended Intercity Passenger Services Lagos – Ibadan – Ilorin- Lagos Train ( Thrice Per week Moving an average of 6,188passengers weekly) Minna – Kaduna – Minna Train ( Thrice Per Week Moving an average of 3,450passengers weekly) Kaduna – Kafanchan Train ( Suspended due to Rehabilitation) Kano – Nguru – Kano Train ( Twice Per Week), Moving an average of 850 passengersper weekly). Excursion Train: Highly patronised during festivities e.g Osun State utilised it duringEaster. Efforts are being made to restore the suspended Mass Transit Services in Jos, Kano andMaiduguri occasioned by security challengesThe targets set for 2012 were achieved in seven (7) areas, but the targets set in the areas ofvolume of cargo conveyed by rail (51 percent) and number of (rail) trips per year (72 percent)was not achieved. The main challenge was constrained by suspension of services along somecorridors.12.2.2 Sea and Inland WaterwaysInland water ways transportation is the least developed segment of the transportation sub-sector in Nigeria. If fully developed, this mode has the potential to provide the cheapest andsafest means of transport, especially for cargo haulage.A. INLAND WATERWAYS SUB-SECTOR Government has recently completed the capital dredging of the Lower River Nigerfrom Warri (Delta State) to Baro (Niger State) – 532km - to facilitate all-yearnavigability.Maintenance dredging is currently in progress.
  • 181. 181181 Government is making arrangement to go into partnership for the dredged Lower RiverNiger to ensure all-year navigability and the sustainability of the channel Baro, Oguta and Lokoja River Ports are under construction and upon completion willbe concessioned to the private sector. Baro and Oguta will be completed in 2013 whileLokoja will be completed in 2014. Makurdi River Port is also to be constructed Onitsha River Port constructed and commissioned The process for the concessioning of Onitsha River Port with modern cargo handlingequipment has reached an advanced stage. Construction of Jetties at Buruku, Idah, Agenebode, Pategi, Igbokoda, Degema andYenogoa.The quantitative targets in the Targets Achieved for the review period are to increase: Volume of Cargo through Inland Waterways to 3,200,000 metric tons; Number of passengers carried to 300,000. Number of boats, ferries, barges and vessels that navigate the waterways to 20,000The major achievements in the sector during this period are: Development of Inland Waterways Transport Master-plan (IWTM) for the country On-going provision of anchorage for repairs and overnight berthing on the waterways. Acquisition of two water ambulances to provide first aid in accident cases. Acquisition of two water mobile workshops for emergency repairs of ferries and boats onwaterways. Commercial Passenger Transportation Programme on PPP arrangement on major andminor water crossings using 14-seater, 28-seater and 45-seater water buses. The routesare Yauri to Malare, Buruku to Abuku in Benue State, Pategi in Kwara State to Nupeko inNiger State, Lokoja to Onisha, Onisha to Bomadi, Idah to Agenebode, Yenegoa to Brass,Calabar to Oron, Marina to Apapa and Marina to Badagry. Bulk Cargo Transportation Programme to move bulk cargo through the dreged channel ofLower River Niger from the sea to the River Ports at reduced cost; Movement of 1,200 tonnes of cargo from Lokoja to Onisha; On-going construction of 500 tons capacity barges in Lokoja for deployment in the LowerRiver Niger Channel; and Movement of 6,000 tonnes of crude oil from Okpai (Delta State) to the sea.Similarly on sea transport, work is in progress to develop new deep seaports at Epe/Lekki,Ibaka, Agge, Olokola and Badagry, and to dredge the harbors in Lagos and Bonny toaccommodate large ocean liners and provide standard facilities, including RORO facilities inBonny.
  • 182. 182182Ninon Barge Moving Tiles from Lokoja toOnishaLokoja JettyDredging in Lower River Niger Dredging in Lower River NigerThe gaps in the inland water way transport are lack of linkages with other modes oftransportation and limited roads and rail extensions linking inland river ports. These gaps areas a result of jurisdictional conflict with State Governments and menace of water hyacinth – across border water weed that impedes smooth navigation.To address the challenges of inland waterways, the Government is undertaking constructiveengagement with the State Governments; while inter-agency collaboration is beingencouraged to curb the menace of water hyacinth.12.2.3 RoadsThe national road network is responsible for over 90 percent of the movement of goods andpassengers across the country. Out of a network of about 200,000 km of roads in the country,the Federal Government owns 35,000km or 17.5 percent of the bituminous network.The key TA targets set for the road transport sub-sector are: increase the percentage of roads in good condition from 32 per cent to 70 per cent;and maintenance of about 19,868 km of the existing road network.
  • 183. 183183Other targets are highlighted in Table 12.1.Table 12.1: Other Targets of the Road Sector 2012S/NO PERFORMANCE INDICATORS 2012 (PLANNED TARGET) 2012 ACTUALA. Provision of good andmotorable roadsKM of roads constructed 3,807KM(454.37KM) 651KMKM of roads rehabilitated 8892KM(1,007.29KM) 976KMKm of roads maintainedthrough donor funding100KM 257KMArea /m2 of potholes patchedby FERMA862,077.17sq/m 1,002,343sq/mKM of roads maintained byFERMA14,023KM(3,787KM) 1,380KMNo of bridges constructed 1,687(15) 5NO.No of bridges maintained 534(33) 28NO.B. Improved travel time onfederal roads70KM/HR 90KM/HRA total of 651km of roads was paved with bitumen in 2012.The five flagship projects undertaken over the last two years are as follows:Apapa Oshodi ExpresswayHon. Minister of Works Flagging off the dualisation of the Lokoja-Benin Road
  • 184. 184184Section 1 has been completed while works are progressing on the Trailer Park, dedicatedbridges leading to Tincan Island from Liverpool Road roundabout and the entire section 2,phase 2 from beachland junction to Cele bus stop.Benin Ore Shagamu HighwayBefore the intervention on this road by the President Jonathan administration, motoristsspent over 9 hours or more to travel from Benin to Lagos and vice versa. Travel time has nowbeen reduced to 4 hours even though work on some sections of the alignment is still on going.Work has been substantially completed, while a new contract for the reconstruction of theoutstanding sections on Benin Ofusu - Ore – Ajebandele - Shagamu (Phase 2) has beenawarded.Abuja-Abaji-Lokoja DualisationThe Abuja Abaji Lokoja dualisation project is part of the Trans Sahara arterial highway (RouteA2) linking the southern part of the country to the north and onward to Niger Republic. Workis progressing steadily on the four sections of the project. The completed sections were
  • 185. 185185temporarily opened up for ease of traffic, resulting in marked improvement on the motorablecondition of the road. This road, which was notorious for its high accident rate, has witnesseda reduction in accidents, following the opening of the Giri and Gwagwalada bridges of theroad.Kano Maiduguri DualizationThe Kano Maiduguri road dualisation project is the major arterial highway connecting Kano toBorno State, via Jigawa, Bauchi and Yobe States, onward to Ndjamena in Chad. The road is553km long and was awarded in five sections to five contractors. An average completion rateof 50% has been achieved, including the completion and opening of the Kano Western Byepass flyover to motorists. The government plans to accelerate the pace of work, even againstthe security challenges on the route.Onitsha Owerri ExpresswayThe Onitsha Owerri expressway project is 90.5km long, including the alignment from OnitshaBridge to the slip road to Onitsha-Enugu Expressway at Upper Iweka. Before now, motoristsfrom Owerri were experiencing untold hardship accessing the Onitsha market through theroad, due to the poor state and limited capacity of the road. Prior to the completion of the
  • 186. 186186project, commuters were spending over 2 hours from Onitsha to Owerri for a distance of90.5km that should be travelled in about 1 hour.The Onitsha Head Bridge end up to Upper Iweka also has been greatly improved upon, withthe recovery of the service lanes and its expansion to 6 lanes. This has improved travel timesalong the route and significantly reduced the traffic bottleneck that was hitherto experiencedin the area. Today, due to the success recorded on this stretch of the road, coupled with thephenomenal improvement on the Benin Ore Shagamu road, it is possible to travel fromOnitsha to Lagos in just 6 hours, compared to the average of 13 hours for the same journey uptill 2011.Katsina - Daura road (Katsina State)Other completed projects include the following: Katsina - Daura road (Katsina State); Gombeby pass (Gombe State); Vom Manchok road (Plateau State); and Ijebu Igbo - Sekona (OgunState). These projects have led to improved travel time and productivity, with safe andmotorable roads across the country.
  • 187. 187187Vom Manchok road (Plateau State)The challenges in the road sub-sector include lack of coordination between Federal and Stategovernments to optimize the benefits of roads by building secondary roads and accessfacilities in sync with federal roads and inadequate Institutional and managerial capacity thathas resulted in lopsided planning and design of projects, thus undermining effective projectdelivery. Funding constraints also have decelerated the execution of about 168 majorprojects nationwide. Poor governance of the road sector and heavy reliance on roadtransportation, leading to excessive pressure on the roads are other challenges that haveundermined government efforts in the sector.This Administration is exploring new channels of funding infrastructure through PPPs, whilestrengthening the governance structure of road operations and maintenance. Currently, thereis a bill to set up a federal road authority as well as a federal road fund to improve thestructure and quality of governance in this sector and make its development moresustainable. The Government has also recruited over 400 engineers during the period underreview to strengthen institutional capacity.12.2.4 AviationAir transportation facilitates speedy movement of goods and persons and helps promoteintegration between the domestic and global economies. It also impacts positively onproductivity and economic performance, especially for developing countries. The Nigerianaviation industry comprises 21 airports managed by FAAN (6 of these are designatedinternational airports); 4 privately owned airports; 226 helipads and heli-decks; and 40aerodromes. The sector had been characterized by decades of under investment, not only inthe fixed assets, such as taxiways, runways and terminal buildings, but also in fire and safetyequipment, training, lighting and power generation. Apart from the Murtala MohammedInternational Airport (MMIA) in Lagos, were operating beyond its capacity, most of theairports are operating below their design capacity.
  • 188. 188188Facilities of Nigerian Airport before the renovationThe targets of the aviation sector under the TA are to make air transportation the preferredand safest means of transportation; creating a self-sustaining business model and drivingsocio-economic growth in Nigeria. The specific targets are to: Develop Lagos and FCT(Abuja) as regional hubs, in-line with international standardsand best practices and develop requisite capacity and manpower to meet the needs inthe aviation industry for the 21stcentury Change the business model of the industry into a self-sustaining one, throughincreased private sector participation (reduce financial burden on government) Maximize the contribution to the socio-economic development of the NigerianEconomy through increased trade and in-flow of FDI, focusing and growing of agro-allied designated airports and resultant job creation Build world class terminal buildings, modern air navigation and meteorologicalequipment for safety, effective security system.Government is also in the process of developing aerotropolis classified Investmentopportunities into seven (7) business clusters within the Aerotropolis model. This is aimed atcreating 500,000 direct and indirect job opportunities. A private sector driven business modeland developing the Perishable Cargo operational framework have also been adopted.One of the major achievements of the sector is the remodeling of four strategic internationalairports in Abuja, Kano, Lagos and Port Harcourt. The pictorial view of the airports ispresented below.
  • 189. 189189Other key achievements of the aviation sector include:• Reform of financial management systems of the aviation sector to ensuresustainability, improve revenue collection and eliminate leakages;• Promotion of partnership between domestic airlines and major foreign carriers;
  • 190. 190190• Revision of the BASAs to create opportunities for domestic carriers to fly internationalroutes;• Installation and upgrade of infrastructure at various airports to ensure the safety ofgoods, security of passengers and enhance night operations;The Government is in the process of transforming the airspace management of the country. Ithas installed several automated devices and equipment, such as Terminal Radar ApproachControl (TRACON) and the Aeronautical Information Service (AIS) . Other facilities providedare: Total Very High Frequency Radio Coverage; Control Tower Modernization; WorldGeodetic Survey-84; and other navigational aids; ICT enhancement and mobile control tower.To further strengthen air navigation safety the Government has repositioned the NigerianMetrological Agency (NIMET) to provide accurate and timely weather information. Severalcutting-edge technologies have also been procured and installed, while intensive humancapacity development has been undertaken.In the area of perishable cargo value chain, Government has designated 6 airports inproximity to food baskets as perishable cargo airports (Jos, Makurdi, Yola, Jalingo, Lagos andIlorin) and is developing international standard perishable cargo facilities at these designatedairports to be ready by the end of 2013.The aviation industry has been constrained by the inability of the country to reciprocate itsBilateral Air Service Agreements (BASA) rights; the dominance of international carriers onregional and international routes and leakages in revenue collection, occasioned largely bymanual collections. Other constraints include stagnant aviation manpower development andbrain drain in the sector, as well as the absence of Maintenance and Repair Organizations(MROs) with the attendant drain on the nation’s foreign exchange.Going forward, the Government will ensure a sustained implementation of the aviation sectorMaster Plan, which would address the identified constraints.12.3 Housing and Urban DevelopmentThe Transformation Agenda identified the provision of accessible and affordable housing as astrategic national imperative for guaranteeing the well-being and productivity of thecitizenry. The housing sector, which employs approximately 10 percent of the labour forceworldwide, has a high potential for job creation in Nigeria. Nigeria currently has a housingdeficit of 23 million houses that should be met by 2020. This would require annual supply of aminimum of 2.6 million homes to bridge the gap. Mortgage transactions are very low andmortgage institutions are few.
  • 191. 191191The goals and targets of the housing and urban development sector for the period 2011-2015are to: develop an efficient land administration system to make land ownership available/accessible and easily transferable at affordable rates; provide adequate and affordable housing finance to all Nigerians by developingefficient primary and secondary mortgage markets; establish an efficient legal and regulatory framework to enforce the control andmonitoring of housing delivery; develop professional and skilled manpower, and build adequate capacity throughtraining and skills acquisition to support the sector; reduce the cost of production of houses by developing and promoting appropriatedesigns and production technologies in the housing sector; and promote functional and planned towns and cities as centres of economic growth andnational development. Recapitalization of FMBN Planning, design, construction and maintenance of 600,000 Housing Units by PPP Planning, design, construction and maintenance of 240,000 affordable housing units byFHA and other reputable developers Planning, design, construction and management of other key housing related projectsand servicesThe key achievements in the sector include:i. Completion of the construction of 204 and 256 prototype housing units in 2011 and2012 respectively in different parts of the country;ii. Provision of 1,250 and 504 housing units in 2011 and 2012 respectively through PublicPrivate Partnership (PPP);iii. Construction of 133 and 122 numbers of housing units in 2011 and 2012 respectivelythrough contractor finance initiative;iv. Completed a total number of 906 and 850 housing units through the federal HousingAuthority (FHA) in 2011 and 2012 respectively;v. Provision of a total number of 1,405 and 3,529 mortgages through the FederalMortgage Bank of Nigeria (FMBN) in 2011 and 2012 respectively;vi. Provision of 4,702 and 2,808 numbers of housing units through Estate DevelopmentLoans (EDLs) in 2011 and 2012 respectively;vii. Created a total number of 2,345 and 1,442 service plots of land in 2011 and 2012respectively and issued a total number of 1,030 and 1,101 C of Os in 2011 and 2012respectively; andviii. Trained a total number of 65 and 75 artisans in 2011 and 2012 respectively through theTraining centers of the Federal Ministry of Land, Housing and Urban development.Nigeria, with a population of over 167 million people, requires a minimum of additional one(1) million housing units per annum to reduce the national deficit of about 23 million housing
  • 192. 192192units. Available studies show that most urban dwellers in Nigeria live in dilapidated houseswithout basic amenities and in unsanitary conditions; and the scenario is worse in the ruralareas. The problems is not just the poor quality of housing but also, of inadequateinfrastructural facilities like roads, drainage water, power supply and basic social amenities.One of the key challenges of the sector is the unresolved jurisdictional conflict between theFederal and State Governments physical planning agencies in the implementation of the LandUse Act, 1978. This has constrained accessibility to land. In addition, the high cost of buildingand construction materials has severely constrained housing development.One of the approaches of this Administration to housing delivery is the restructuring of theFederal Housing Authority (FHA) for the effective and efficient discharge of its mandate; andimplementing the proposed mortgage liquidity facility through the Recapitalization of theFederal Mortgage Bank of Nigeria (FMBN) and establishment of the Mortgage RefinancingCompany (MRC). The new approach for housing delivery is for Government to design andimplement policies and programmes in partnership with the private sector and other relevantstakeholders that would provide social housing through government funding, subsidies andother incentives, on the one hand, and exploiting alternative technologies in housingdevelopment and promotion of mixed housing development for all income groups, on theother hand.12.4 Information and Communications TechnologyTowards embracing and encouraging global technological advancements, the administrationcreated the Ministry of Communications Technology in 2011, in recognition of thetransformative power of ICT in national, socio-economic development. The Governmentintends to provide infrastructure leading to job creation and enhance business, productivityand growth. The Government is developing the local ICT industry to deliver on the promises ofthe Transformation Agenda. In this respect, the focal areas are:i. To connect Nigeria through ICT Infrastructureii. To encourage device ownership and provision of access to infrastructure by Nigeriansiii. Local Content: enhance local value added (hardware, software and telecoms)iv. ICT in Government: Implement e-government to facilitate transparency, efficiency andproductivityThe following are some of the achievements recorded in the sector during 2011 to 2012:i. Launched the NigcomSat-1R satellite, to complement the fibre connectivity andprovide more internet bandwidth, thereby reducing the over $1 billion spent inpurchasing internet bandwidth from abroad.ii. Deployed PCs to 766 secondary schools in the School Access Programme (SAP).iii. Deployed PCs and internet access to 193 tertiary institutions in the Tertiary InstitutionAccess Programme (TIAP).
  • 193. 193193iv. Deployed 240 IT Centers and 146 Community Communication Centers across thecountry.v. Collaborating with the CBN to drive digital and financial inclusion, using the PostOffice Deployment of a 10Gbs fibre optic Network to connect Nigerian universities to widerresearch and education network;vii. deployed over 86,000 e-mail addresses for Government on domain names, with250 websites hosted on the platform and 382 MDAs connected in Abuja andother parts of the country; andviii. Locally produced tablet developed, equivalent to the iPad;To achieve this mandate, the government has established a Presidential committee onbroadband strategy to bring the several broadband initiatives into a single national entity.Also, the NigComSat-1R was launched on the 19th of December 2011 with a further MOUsigned with STM Networks Inc. to commercialize all Ku-Band on NigComSat-1R. The Ministryfacilitated the merger of 3 CDMA operators to deploy one of the first 4G long term evolution(LTE) broadband networks in Africa and saved 2,000 jobs. In the area of connecting Nigerians,the Ministry, in partnership with the National Universities Commission, the World Bank andthe TETFund, is in the process of deploying a 10GB fibre optic based network to connectNigerian universities to the wider research and education universe. The roll out whichcommenced in the 1st Quarter of 2013 will involve 36 Federal Universities, 28 Off-Campussites and 12 Medical colleges, whilst Phase 2 will cover State Universities, Polytechnics andColleges of Education. In the area of connected government, there is an ongoing effort todeploy more comprehensive and integrated use of ICT in government, to provide betterresponse to citizens’ demands, improve service delivery and make administration moreefficient. Over 382 MDAs are connected in the FCT and other parts of the country with over86,089 e-mail addresses deployed for government on the domain names, with morethan 250 websites hosted on The Government also attained ISO 27001 certificationin information security management ensuring that all Nigerians enjoy quality service in acyber secure system.
  • 194. 194194CHAPTER THIRTEEN: EFFECTIVE HUMAN CAPITAL AND SOCIAL DEVELOPMENTHuman capital refers to the stock of competencies, skills knowledge and personalityattributes embodied in the ability of labour, which enables it to produce goods and services.The effectiveness of human capital is largely dependent on how well it is developed. This hasmade human capital development a critical success factor in the Transformation Agenda (TA)of the present civilian administration.13.0 Developments in Education and Health SectorIn human capital development, education and health remain very critical and have attractedthe attention of government since inception. These two sectors have developed robuststrategic plans which outlined policies, programmes and projects which are consistent withthe aspiration of the government’s Transformation Agenda.Some of the key initiatives and achievements are discussed below.13.1 Education SectorA country’s ability to remain competitive in a knowledge-driven world is dependent on thedevelopment of the right skills at the different stages of human development and education isa key component for achieving this goal. Government places high premium on its people andappreciates their invaluable efforts in driving the economy. It is committed to ensuring thatthe nation’s human resource endowment is knowledgeable, skilled and productive. Theeducation sector therefore is vital in improving the productivity of the citizens through theimpartation of the right skills, and empowerment of youths with knowledge at the basic andpost-basic levels, irrespective of ethnicity, gender or disability issues. It is also a tool for theproper guidance of the youths through the guidance and counselling framework to enablethem make good career choices.The Transformation Agenda of the current Administration lists the education sector as one ofthe four priority areas due mainly to the fact that the human assets of over 160 million mayindeed become cogs in the wheel of the nation’s progress if not nurtured through qualityeducation which transcends schooling to total-person development.One key area of the sector which serves as the master key to unlocking the future of thenation is the Technical and Vocational Education and Training (TVET). The TVET imparts theneeded knowledge and skills to the citizens on the platform of cutting edge technology toenable them contribute meaningfully to mechanized agriculture, natural resourcedevelopment, the export-based industry and entrepreneurship. To this end, several strategieshave been put in place to further TVET both in the formal and informal sectors to growdevelopment through impartation of the proper skills. Some of these include: capacitybuilding on TVET for 1TF staff overseas, rehabilitation of laboratories and work spaces incolleges and tertiary institutions. There has been a sustained effort by the Federal and States
  • 195. 195195Governments and the private sector in achieving complete access to education at all levelsand bridging gaps in basic and post basic education. Other targets include: Develop national systems in areas that support coordinated approach to qualityeducation delivery – guidance and counseling, monitoring of learning achievement,quality assurance, teacher development, and education management informationsystem; Encourage the effectiveness of institutions that support the delivery of qualityeducation; Rehabilitate infrastructure across all levels of education; Provide support facilities such as libraries, laboratories, information & communicationtechnology so as to improve the teaching-learning process; Provide training and capacity building, motivation to enhance the efficiency,resourcefulness, and competence of teachers and other educational personnel; Reviewing school curricula from primary to tertiary level to be on requirements ofindustry, society and ensuring that the products of the system have the skills to beglobally-competitive; Promoting Technical and Vocational Education and Training (TVET) at formal andinformal level; Promoting girls and boy-child education; Improving the provision of higher education through open and distance learning; Providing special programmes to mainstream the almajiri system into basic education; Ensuring the maintenance of standard through regular monitoring and reporting acrossall levels of education; Improving the collection and management of education data to enhance policy andplanning; Improving academic staff development in tertiary institutions; Improving budgetary allocation to education; and Improving fiscal responsibility and utilization of funds.To further actualize the objective of the sector in relation to the Transformation Agenda,Government developed the 4-Year strategic plan. The major achievements in this sectorthrough this plan are grouped in two broad areas of access to affordable quality and standardand quality assurance.13.1.1 Access to Affordable Quality Education:The issue of access to affordable and quality education is being addressed through thefollowing interventions:a. Institutionalization of Early Childhood Care Development and Education (ECCDE):A One-Year Early Childhood Education programme has been institutionalized as part ofthe education system. All State Governments are required to establish early childhoodcentres in all public primary schools. This will provide an opportunity for morechildren to be captured in the school system, reduce the number of out-of-school
  • 196. 196196children, as well as take advantage of other important aspects of early childhoodeducationb. The Almajiri Education ProgrammeTo address the high number of out-of-school children especially the almajiris in thenorthern part of Nigeria, the Almajiri Education Programme was introduced. TheProgramme mainstreams the almajiri/quranic system into basic education in threemodels:- Integration of traditional Tsangaya/Quranic schools into the formal educationsystem at its original location.- Model boarding almajiri schools to serve a group of tsangaya/quranic schools.- Integration of basic education in established Islamiyyah and Ma’ahad schools.- 124 of these schools are in the final stages of hand over to State governments.c. National Campaign on AccessThe National Campaign on Access to Basic Education has been launched across thegeo-political zones to reduce the number of out-of-school children. For the South-Eastgeo-political zone, which is addressing low participation of boys in education, thecampaign was launched by Mr. President, culminating in the setting up of a team toaddress the challenges of boys drop out in schools.d. Girls’ Education ProgrammeTo improve participation of girls in education, the Government has commenced theconstruction of special girls schools in 13 States of the Federation. This is part of theFirst Phase of the programme.e. Establishment of 12 New Federal UniversitiesTo enhance access to higher education and thereby ensure that teeming Nigeriansyouths are given the opportunity to develop their skills and competencies to help drivediverse sectors of the national economy, twelve new federal universities have beenestablished. This has made it possible for all States of Nigeria to have a Federal
  • 197. 197197University. The first nine of these institutions have started academic activities and areproviding state of the art infrastructure to ensure quality teaching and learning.Federal University, Oye Ekiti13.1.2 Standard and Quality AssuranceAs part of the strategies to address the issue of standards and quality of education, theGovernment has developed a 4-year strategic plan to address the issue in the 104 unitycolleges.Other key interventions made during the review period include: Special funding of education for which over N36 billion FGN Intervention funds weredisbursed to the States in 2012 through the Universal Basic Education Commission(UBEC). Tertiary Trust Fund (TETFund) provided over N76.7 billion to tertiary institutions forthe provision of infrastructure and related facilities. This is in addition to providingN24 billion to 12 institutions on the High Impact Fund to enhance their development toCentres of Excellence.Federal University, Lafia Federal University, Otuoke – Bayelsa State
  • 198. 198198 The 9-year Basic Education Curriculum has been reviewed to enhance its effectivenessin meeting Nigeria’s national goals, while draft Teachers’ Guides in the nine subjectsand the electives thereof have been developed and are being produced fordistribution. In addition, capacity development programmes have been held to enableteachers effectively communicate the curriculum A total of 1.967 million instructional materials in 4 core subject areas of englishlanguage, mathematics, basic science and technology, and social studies wereprovided to primaries 1 and 2 pupils. In addition 4.144 assorted Junior Secondarylibrary materials were provided to schools across the country.Supply of Instrumental Materials to SchoolsFederal Government Girls College, LejjaFederal Government College, Ilorin & Federal Government College, Warri 51 Federal and State Polytechnics have been refurbished and equipped with modernlaboratory equipment to encourage participation in Technical and VocationalEducation and training.
  • 199. 199199Federal University, Lokoja Over 352 science and technical laboratories in the 104 Federal Unity Colleges wererefurbished, in addition to providing 62 ICT centres and 40 sets of mathematical kits.Federal Government College, Lagos & Federal Government College, KadunaMathematics & Chemistry Laboratory, Federal Government Academy, Suleja
  • 200. 200200 Scholarships were awarded to over 5000 staff of Nigerian tertiary institutions fordoctoral level study, in Nigeria and overseas, in addition to a total of 101 beneficiariesof the Presidential Special Scholarship for Innovation and Development (PRESSID)selected for training in the top 25 universities of the world.As a result of the sustained implementation of the plan and these interventions, there was animprovement in the performance of students in public examinations in 2012, compared to the2011. Specifically, 38.81 percent of candidates that sat for the 2012 Senior School CertificateExamination obtained credits in five subjects including English and Maths which is eightpercentage points more than the 30.91 percent recorded in 2011. This trend is expected to besustained.13.2 Health Sector:The health sector has made significant improvements in the two years of this Administration.The Federal Ministry of Health, the State and Local Governments as well as our developmentpartners have been steadily working toward reducing the mortality rate and improving accessto quality healthcare in the country. In line with the Transformation Agenda, effort is beingmade to accelerate progress towards achieving the MDGs, especially, the health relatedMDGs.Vice President Namadi Sambo and other Dignitaries during the distribution of educational materials to JSS StudentsBeneficiaries of the Presidential Special Scholarship for Innovation and Development (PRESSID)
  • 201. 201201To guide the health sector reform, an over-arching compass document that provides broadstrategic direction for the health sector, the National Strategic Health Development Plan(NSHDP) was developed in 2010. The NSHDP has 8 priority areas: Leadership and Governancefor Health, Health Service Delivery, Human Resources for Health, National HealthManagement Information System, Partnerships for Health, Community Participation andOwnership, and Research and Development.In the current Administration, the Action Push Agenda (APA) was initiated to support thepriority areas of the NSHDP. It seeks to identify low hanging fruits from the NSHDP, and put inplace actions to fast track their implementation to yield quick dividends for the Nigerianpopulace. The APA is based on six (6) core values. They are action, community, teamwork,networking, outreach, and innovation. Through, NSHDP and APA interventions to improveaccess to affordable quality healthcare in Nigeria.13.2.1 Access to Primary Healthcare:To support the Transformation Agenda and NSHDP’s goal, a vision to save one million lives by2015 was articulated. This represents a major paradigm shift in the approach to servicedelivery in the health sector. This approach involves moving away from focusing on justinputs, to a focus on delivery and impact. Government launched the Saving One Million Lives(SOML) Initiative in October 2012, for delivery of quality health care services for theunderserved through a public/private coalition.The SOML Initiative also demonstrates Nigeria’s commitment to the UN Commission on Life-Saving Commodities’ goal to save the lives of 6 million women and children globally by 2015.The UN Secretary General appointed Mr. President as co-Chair of the UN Commission on life-saving commodities, with Prime Minister H.E. Jens Stoltenberg of Norway.
  • 202. 202202Professor Oshotimehin, Dr. Ado Muhammad, Dr. Muhammad Pate, Mr. President, Ms. Angell-Hansen, and Professor Chukwu looking at Exhibitions during the Launch of the SOML InitiativeFour pillars are critical to achieving this goal: expanding access to basic services, with a focuson maternal, neonatal and child health, including using the SURE-P funds; encouraging theprevention of major illnesses, especially communicable diseases; improving the quality ofcare in healthcare facilities through better clinical governance; and reviving the privatehealth sector through unlocking its market potential.Commendable progress has been made in achieving various health outcomes. Mostimportantly, the SOML Initiative estimates that over 433,650 lives have been saved in 2011and 2012 through the multiple interventions (MCH, PMTCT, Malaria control, Nutrition, RoutineImmunization and Essential Commodities) by the international development partners, incollaboration with Federal MDAs. With this result and sustained increase in healthinterventions and coverage levels, the country is almost half way to achieving the target ofsaving at least one million lives by 2015.Significant progress has equally been made under maternal and child health, resulting in theconsistent decline in the maternal mortality rate in the intervention areas. The governmentinitiated programs to address the critical shortages in human resources for health that havebeen a constraint to scaling up access to care. For instance, under the Midwives ServiceScheme (MSS) and SURE-P maternal and child health (MCH) program, a total of 9,243 frontlinehealth workers (4,995 midwives, almost 3,000 community health extension workers (CHEWS)and 1,248 village health workers) have been recruited, trained and deployed to the mostunderserved communities in Nigeria. In addition, 1,500 primary healthcare facilities havebeen refurbished and supplied with essential commodities. As a result, in 2012 alone, 1.044million antenatal care visits were made in the 1,000 MSS facilities across 36 states and FCT,which is a 26 percent increase from the 828,922 reported in 2011. Also, over 141,929deliveries were carried out by skilled birth attendants, and over 145,990 women attendedfamily planning clinics in 2012.
  • 203. 203203First SURE-P BabyIn recognition of the achievements made by the MSS, it was awarded the Innovation inGovernment Services and Programmes Award at the Commonwealth Association of PublicAdministration and Management (CAPAM) held in Delhi, India in October 2012.The Pentavalent vaccine was introduced into the EPI schedule. This singular vaccine providesthe protection against Diphteria, Pertusis, and Tetanus (DPT), Hepatitis B, and Hemophilusinfluenza type b (Hib). Thirteen states and the FCT were selected for phase 1, based on theirDPT3 performance in 2003, 2006 and 2010 National Immunization Coverage Surveys.The commitment to polio eradication has begun to pay off. From an average of over 1000cases annually in 2008, 2009 and this has come down to 62 in 2011, 122 in 2012 and only 8 sofar in 2013. In addition, population immunity for wild polio virus Types 1 and 3 has increasedyear on year by about 25 percent since 2011 (Figure1) .
  • 204. 204204Figure 13.1: Monthly onset of WPV1 with targeted SIAs (2006 – 2012)For more than 4 years, there has been no case of guinea worm infestation and we are makingall efforts to ensure that Nigeria receives certification as being guinea worm free before theend of the year. The WHO Certification Team will visit the country in June, 2013 tocommence the certification process.Another major focus in the health sector is nutrition. The percentage of children under fivethat are underweight dropped from 27.1 percent at baseline to 24.2 percent (MICS 2011) in2012. This shows an improvement in the national status of malnutrition between 2010 and2012. With the sustained implementation of the SOML Initiative, the donors have investedadditional funds and effort to increase the coverage of Community Management of AcuteMalnutrition (CMAM). These efforts to combat malnutrition have been in collaboration withother stakeholders, including the Ministries of Finance, Agriculture, National PlanningCommission and development partners.
  • 205. 205205Table 13.1: Key Performance Indicators of the Health Sector Showing Annual Performance andTargetsPerformance Indicators 2010BaselineDecember20112012 2015 Target inTransformationAgendaNumber of Lives Saved - 433,650 1,000,000 (total)percent change in under-5children that are underweight27.1 27.1 24.2 17.9Under 5 mortality rate per 1000live births157 141 158 75Maternal Mortality: Deaths due topregnancy per 100,000 live births545 487 487 136Increase in total focused ANCattendance in MSS sites828,922 1,044,863(26 percentincrease)Number of Polio virus cases peryear21 62 122 in 2012;only 8 casesin 20130percent of Nigerians coveredunder any form of healthinsurance- 6 7.5 30Proportion of 1 year oldimmunized against measles85 90 75 95Prevalence of HIV/AIDS infectionsamong 15-24 year olds4.4 4.1 4.1 3.1Percentage of children under 5sleeping under insecticide-treatedbed nets5.5 29 80TB case detection rate underdirect observation treatment shortcourse ( percent)31 45 50 percent 70 percentTB cure rate - 84 percent 85.5 percent 85 percentGovernment is also implementing a novel quality improvement and clinical governanceprogram to improve quality of care in primary, referral and tertiary facilities. The qualityimprovement and clinical governance agenda assesses quality improvement through three
  • 206. 206206principal lenses: patient safety, improving clinical outcomes and enhancing patientexperience.Within the last two years, there has been an unprecedented increase in private sectorengagement. Over two hundred private health sector leaders across the healthcare valuechain have been engaged and the first ever private health sector summit was convened. TheFederal Ministry of Health also partnered with several organizations including PharmAccess,GE Healthcare, the Gates Foundation and the World Bank, each of which is supporting specificprojects that promote quality-based accreditation, leadership training and facilitybenchmarking. Additionally, under the SURE-P Maternal and Child Health (MCH) program,quality improvement is being incorporated as an essential aspect of upgrading the primarycare facilities in order to ensure that while there is an increase in demand for MCH services atthese facilities, the quality of care delivered is not compromised.Permanent site of Federal Staff Hospital, AbujaAs a result of the private health sector’s potential to expand access to health services,improve quality of care, contribute to Nigeria’s GDP (and job creation drive), reduce thefinancial burden on government and finance additional private sector investment in thehealth sector, the Government has prioritised “Reviving the private health sector byunlocking its market potential” as one of the four levers for the health sector.The programme is at its final phase of implementation. It has evolved into five interventionswhich include fiscal policy (to reduce tariffs and duties on undeserved health commodities),regulatory, access to capital and model investment projects (such as the Abuja MedicalMall/City) to support the growth of the private sector across the entire value chain.The Government has also set up the Nigeria Private Sector Health Alliance which aims atidentifying and mobilising eminent and influential private sector leaders – and galvanizeresources to accelerate progress towards achieving the health related MDGs.
  • 207. 20720713.2.2 Improving Tertiary HealthcareGovernment has been upgrading the country’s tertiary health facilities to bring them up tointernational standards. Upgrades include infrastructure development which involves therehabilitation and equipping of Federal Tertiary Hospitals. There are also ongoing efforts toengage the private sector to build world class hospitals across the six geopolitical zones in thecountry.Commissioning of the Federal Staff Hospital Jabi, Abuja by Mr. President represented by theVice President: L-R – Prof. Onyebuchi Chukwu, China Ambassador, Arc. Mohammed N. Sambo –VP, Dr. Shamsuddeen Usman-Minister, National Planning, Hajia Zainab, Minister-HMWAIn continuation of the modernization of the Federal Teaching Hospitals by the FederalGovernment to international standards, two additional Hospitals (Obafemi Awolowo UniversityTeaching Hospital, Ile-Ife and the University of Benin Teaching Hospital, Benin City) havebeen completed, while the Nnamdi Azikiwe University Teaching Hospital and the University ofCalabar Teaching Hospital are at advanced stages of completion.Also planned for upgrading are 6 other Teaching Hospitals, namely: Abubakar Tafawa BalewaUniversity Teaching Hospital, Bauchi, National Hospital, Abuja, Federal Teaching Hospital,Abakaliki, University of Abuja Teaching Hospital Gwagwalada, Irrua Specialist TeachingHospital, Irrua, Edo and University of Uyo Teaching Hospital, Uyo. Upgrading andaccreditation of the four Regional Biomedical Maintenance Training Centres have alsocommenced.The Government has continued to ensure that Nigerians get screened for the commoncancers, such as cancer of the breast, cervix, and prostrate. New centres have beenestablished in 2012 and they are:
  • 208. 208208 Federal Medical Centre, Gusau. University of Port-Harcourt Teaching Hospital, Port-Harcourt. National Obstetric Fistula Centre, Abakaliki. Federal Medical Centre, Keffi Federal Medical Centre, Ebuta Metta Abubakar Tafawa Belewa Teaching Hospital Bauchi.In spite of the improvements made in this sector, the health sector goals will requiresignificant acceleration in program implementation and coverage to be able to achieve theset targets. Effort is being made to increase the retention of healthcare workers, given thesecurity challenges in the affected parts of the country.The Government will continue to work towards increasing access to healthcare throughcreative and innovative partnerships and interventions. Meeting the MDG goals for 2015continues to remain a challenge, but with accelerated effort, tangible results will beproduced, to save the lives of mothers and children. To accelerate progress, we will continueto intensify our efforts in the following areas: sustained focus on delivery and outcomes,strong performance management, effective partnership and collaboration at the States andLGA levels, and enhanced citizen and community participation.13.3 Progress on Human Capital-Related MDGsGiven the importance of human capital in global development, human capital indicators havebeen included as part of the globally agreed Millennium Development Goals. For instance,goals 2, 4, 5 and 6 focus on primary education and health-related issues.13.3.1 MDGs Intervention in EducationNigeria has made significant progress in the achievement of the human capital-related MDGsin the last 2 years. Remarkable increase has been achieved in the area of net enrolment ratioand net attendance ratio in primary education, up from 62.1 percent in 2008 to 70.1 percentin 2012. The literacy rate of 15-24 year-olds, male and female, increased slightly from 64.3percent in 2008 to 66 percent in 2012 with a gap of 34 percent yet to be achieved, before theend of the MDGs in 2015. The ratio of girls to boys in primary, secondary and tertiaryeducation (per 100 boys) has been surpassed, growing from 76:100 in 2008 to 102:100 in 2012.This shows that elimination of gender disparity at all levels of education has been achieved inNigeria.13.3.2 MDGs Intervention in HealthAppreciable progress was made in the reduction of under-five mortality (per 1,000 live births)from 157 in 2008 to 141 in 2011. Equally, the percentage of children under five with feverwho are appropriately treated with anti-malaria drug increase from 33.2 percent in 2008 to
  • 209. 20920954.8 percent in 2012. Nigeria has surpassed the target in the reduction of maternal mortalityrate (per 100,000 live births) which dropped from 545 in 2008 to 487 in 2011 and is estimatedto further decline in 2012, given the scale-up of health related interventions during theperiod. This is also consistent with the target of the Transformation Agenda of 273 for 2013.In the area of sustainable development, it was recorded that the proportion of the populationusing improved drinking water rose slightly from 55.8 percent in 2008 to 57 percent in 2012,with a deficit of 20 percent yet to be achieved, while the proportion of the population usingimproved sanitation facilities dropped significantly from 39 percent to 33.7 percent, leaving adeficit of 35.8 percent, to meet the MDG target. In this regard, more effort will be gearedtowards sustainable development, polio immunization, training and deployment of skilledhealthcare personnel.The key challenges that remain include: inadequate funding of projects; late release ofbudgeted funds; lumping of MDGs funds with MDA’s funds, which slows down programmeimplementation; weak M&E systems; insecurity and natural disasters; and insufficient dataand statistics.The prospects for achieving the Millennium Development Goals (MDGs) on universal primaryeducation, promoting gender equality and women’s empowerment, some aspects ofenvironmental sustainability, and developing a global partnership for development are good.However, the goals on poverty reduction, child mortality, maternal health and disease arestill providing rather difficult.Going forward, there is need for increased community participation and improved ownershipand sustainability of projects. Collaboration between the MDAs and OSSAP-MDGs would alsopromote synergy between the three-tiers and various arms of government. The ConditionalGrant Scheme (CGS) for the purpose of alleviating poverty among the most vulnerable andabsorption of teachers through the Federal Teachers’ scheme, should be encouraged further.13.4 Eradicating PovertyThe problem of poverty and how to reduce it remains the most pressing challenges in sub-Saharan Africa. Poverty is said to be multi- dimensional, consequent on the fact that it can beas a result of lack of technology, lack of education, lack of adequate health services, un-employment, and inadequate data on the nature, sources and causes of poverty, including itsintensity and spread.As part of the Government’s effort to arrest the above problems, a Social Protection andSafety Nets programme was designed in the Subsidy Re-investment Programme to protect thevulnerable and to redistribute resources in favour of the poor. In particular, the number ofsocial protection programmes have increased, notably the National Health Insurance Scheme(NHIS), the Contributory Pension Scheme, which has about N3 trillion accumulated capital andcontributors spread across the federal and states governments and the private sector;National Housing Fund Scheme, SURE-P, Employee Compensation Scheme, etc. Other socialprotection programmes include protective social assistance, such as the conditional cash
  • 210. 210210transfer, targeted at nutrition programmes, education and health waivers, subsidies, andConditional Grant Scheme.13.4.1 Job creationA number of initiatives have been embarked upon to reverse the high unemployment trend.These include The Public Works and Women/Youths Employment (PW/WYE) project, whichwas launched by the President. The project targets 370,000 jobs across the country in 2011.Similarly, the YouWiN (Youth Enterprise with Innovation in Nigeria) project was launched inOctober 2011, to provide jobs for 80,000 to 110,000 unemployed Nigerian youths( The YouWiN Programme is a collaborationof the Ministry of Finance and the Ministry of Communication Technology (MCT). Jobs wouldbe created through businesses created by the 3,600 youths with brilliant business ideas, whoare identified through YouWiN and directly supported to realize their entrepreneurial ideasover the next three years. After intensive business development training, the first set of1,200 potential beneficiaries were selected in March 2012 for grants to start their proposedbusinesses.In 2011 the Conditional Grant Scheme in the State and Local Governments recorded a numberof key successes. These include, the construction, renovation and equipping of 1,646 healthfacilities, construction of 4,478 water facilities, a conditional cash transfer to 39,567households, payment to 2,260 new village heath workers, building and renovation of 742classroom blocks, and procurement of 1,214,271 textbooks, among others.In 2012, the OSSAP-MDGs extended the Conditional Grants Scheme to Local GovernmentAuthorities (LGAs). The expected deliverables are construction, renovation and equipping of afurther 1,743 health facilities, construction of 4,507 water facilities, building and renovationof 972 classroom blocks, and the procurement of 1,590,373 textbooks. As agriculturerepresents one of the target areas of the Office for improving progress against MDG 1, OSSAP-MDGs is introducing the funding of 148 agricultural co-operatives, one in each of the targetedLGAs, the SURE-P, YouWin, Graduate Internship Scheme, CSWYEP, NDE, NAPEP, Microfinance,ATA Financial inclusion, Technology incubation centres, and entrepreneurship development.13.4.2 Access to MicrocreditThe Administration, in its bid to further reduce poverty in Nigeria embarked on other socialassistance programmes, such as conditional cash transfers (CCT) or target waivers/subsidiesfor education or health practiced by a few States. The best form of CCT is Care of People(COPE) which is funded through the MDG-DRG and targeted at the very poor or vulnerablehouseholds with children of basic school age. Other CCTs include reduction of girl drop-out asa result of early marriage in Bauchi, Kaduna and Kano States. In many States, while primaryeducation is free, a number of targeted school subsidy and free waiver programmes havebeen introduced. In the same vein, the Maternal and Child Health Care Programme (MCH)provides free primary health care for children less than five years of age with primary andsecondary care for pregnant women until six weeks after delivery.
  • 211. 211211The 1stNIP target was to reduce the poverty and vulnerability level from 65 percent to 50percent by 2013. In terms of implementation, however, it is evident that the National Plan ofAction (NPoA) did not include specific linkages to national planning instruments. Also, caresupport and protection services have not been well integrated with other social sectorplanning e.g. health and education.13.4.3: Affordable Quality HomesShelter is one of the most basic human needs; affordability is the real barrier to satisfying thisneed. Affordability refers to the supply and availability of housing that is both within thefinancial reach of households and matches their aspirations. Nigeria has experienced rapidurbanisation, with nearly 50 percent of the population living in urban areas. The federalgovernment of Nigeria is working towards increasing access to quality and affordable housingto 37 percent of Nigerians, by the end of 2013. The progress recorded so far shows that thesector can exceed this target. Provision of affordable housing is a key performance indicatorfor the sector. Other indicators are employment generation; development of professional andskilled persons in the housing sector; fixing of land efficiency; as well as provision of policyregulatory services. The Government is also intensifying effort to train artisans to becomeskilled labourers, so that they can have sustainable jobs.Provision of affordable housing includes easing the process of acquiring land that can beused for building houses, and creating a separate window for housing players to network. Thisis a network of participants; governments, banks, development institutions and others. .The Federal Mortgage Bank of Nigeria (FMBN) achieved remarkable progress in Housing, sincethe inception of the present administration. The success achieved can be attributed to thereform strategy implemented by the new FMBN management, in line with the TransformationAgenda of the Federal Government. The FMBN-administered National Housing Fund (NHF)scheme has been making gradual impact on Nigerians. The scheme has since funded thebuilding of more than 61,193 housing units in the six geopolitical zones in the country.The following strategic targets are directed towards providing affordable quality housing toNigerian’s; Developing an efficient land administration system to make land ownership available,accessible and easily transferrable at affordable rates Providing adequate and affordable housing finance to all Nigerians by developing anefficient secondary and primary mortgage markets; Establishing an efficient legal and regulatory framework to enforce the control andmonitoring of housing delivery; Developing professional and skilled manpower, and building adequate capacitythrough training and skills acquisition to support the housing sector;
  • 212. 212212 Reducing the cost of production of houses by developing and promoting appropriatedesigns and production technologies in housing sector; and Adding 10 million new homes to the National Housing stock.The Federal Ministry of Land, Housing and Urban Development (FMLHUD) report shows that35.93 percent in 2010, and 35.96 percent in 2011, of the population have access toqualitative, affordable and sustainable housing. Considerably, more effort is needed here, toensure that a higher proportion of Nigerian’s can afford quality homes.The total number of housing units provided by the FMLHUD rose by 1,407 in 2011 from 7,743in 2010, as a result of a new initiative of Public- Private-Partnership (PPP).The key challenges facing the sector include access to finance for house buyers and housingdevelopers, high interest rates and low level of income, high cost of building materials, weakplanning/building regulations, high cost of estate infrastructure and lack of skills/capacity.The dearth of finance remains a major factor for the current huge housing deficit in thecountry.13.5 Women and Social DevelopmentThe main thrust of the National Gender Policy is to promote a gender-sensitive and genderresponsive culture in policy planning and national development. A major tool for the requiredsocial transformation shall be the system-wide approach of promoting gender mainstreamingand women’s empowerment in all public and private sector policies and programmes.The key achievements include creating awareness on the participation of women in politicsand support for women aspirants towards participation as candidates in general elections,creation of a database of women political aspirants, establishment of a women political trustfund implementation of national and international policy treaties, conventions and protocols,such as the Child Rights Act, Gender Policy, Convention on the Elimination of DiscriminationAgainst Women (CEDAW), Rehabilitation Policy, Social Welfare Policy and the dissemination ofthe OVC National Survey in 3 geo-political zones.Other initiatives undertaken during the period included: promoting and protecting the rightsof children and enhancing their developmental well-being i.e. (i) enhancing awareness andenforcement of protection related legislative and policy frameworks and (ii) raisingawareness, preventive activities and response services to address child protectionvulnerabilities, in partnership with relevant public service agencies (schools, health facilities,police etc), the justice system, etc. Others include care, welfare, empowerment andprotection of the rights of persons with disabilities by provision of aids and appliances,vocational skills training, materials and assistance; promoting gender equality for sustainabledevelopment; harmonization of OVC M&E tools and pre-testing in 7 States; and review,domesticating and implementing international and regional commitments/agreements, aimedat advancing the Rights of women, children, PWDs, the elderly and other vulnerable groups.
  • 213. 213213A significant achievement of the Administration was the increase in women’s representationin governance and the attainment of 33 percent Affirmative Action in Federal Appointmentsat the Executive level, with the appointment of 13 female Ministers out of 42, representing 31percent and 4 Special Advisers out of 18, representing 23 percent. These appointments, whichwere made directly by President Goodluck Jonathan, set the stage for the attainment of theMillennium Development Goals (MDGs) target number three on Gender Equity and WomenEmpowerment.Another initiative is the construction and equipping of 77 skills acquisition centres across thecountry, of which 24 have been completed. Installation of equipment is going on 15 out of the24 centres while 2 out of the 15 centres are fully equipped and awaiting commissioning.These centres, when completed, are expected to reduce unemployment and associated socialvices in the society, increase income generation through job creation for women and assist inreducing youth restiveness, especially at the grassroots. It is expected that each skillsacquisition centre will train a minimum of 500 women and persons with disabilities perannum.The National Centre for Women Development has trained of 9,210 women nationwide, fromJanuary to December 2012, in the following vocational skills: interior and outdoordecorations, cosmetology and beauty therapy, hair dressing, fashion designing and garmentmaking, etc.Two micro-credit schemes have been set up to assist women, namely: The Women Fund forEconomic Empowerment (WOFEE), in collaboration with the Bank of Agriculture and the StateGovernments and the Business Development Fund for Women (BUDFOW), in collaboration withthe Bank of Industry. The two schemes are revolving facilities with an interest rate of 10percent. The WOFEE scheme provides group credit facilities to rural.The policy of assisting the mobility of Persons With Disabilities (PWDs) through provision ofvarious aids and appliances has continued. Five hundred (500) PWDs were assisted and a totalof 115 Visually Impaired Persons benefited from skills acquisition programmes from theNigerian Farm craft Centre for the Blind in Lagos.The key challenges for the sector include poor understanding of gender issues in the country;non-domestication of international laws, treaties and conventions; inadequate number ofprofessional socio-economic security for women and other vulnerable groups; inadequatephysical infrastructure; and absence of specific infrastructure for the physically challenged,among others.Despite the progress made over the years at both the Federal and State levels to ensuregender equality in all sectoral policies and programmes, challenges that are attributable topatriarchal, deep-rooted traditional beliefs and customs and low level of female involvementand participation in creating change, have contributed immensely to the perpetuation ofgender inequality in the country.
  • 214. 21421413.6 Youths DevelopmentYouths development aims at empowering the Nigerian Youths to become self-reliant andsocially responsible, especially in eschewing social vices that are prevalent in the society. Theyouths in any society are the greatest investment that any country requires for meaningfuldevelopment. They are the most active segment of the population, whose energies, ifproperly harnessed, can contribute in no small measure to a nations economic, social andpolitical development.The youths population in Nigeria is estimated at over 60 million. They are the largestdemographic group and have the potential to facilitate the rapid development of the country.Currently, the state of youths development in the country today is challenging. Youthsunemployment is very high and alarming particularly among graduates of tertiary institutions.It is estimated, for example, that about 230,000 NYSC members are discharged annually, withless than 10 percent of them gaining employment.All these have given rise to high level of crime, militancy and youth restiveness, increasinglevels of drug addiction and usage, general breakdown in moral values and norms, a perverseculture of get-rich-quick and a host of other negative dimensions.A number of initiatives have been embarked upon to reverse the trend. In January 2012, thePublic Works and Women/Youth Employment (PW/WYE) project was launched by thePresident. The project targets 370,000 jobs across the country in the year. Similarly, theYouWiN (Youth Enterprise with Innovation in Nigeria) project was launched in October 2011,to provide jobs for 80,000 to 110,000 unemployed Nigerian youths( The YouWiN Programme is a collaborationof the Ministry of Finance, the Ministry of Communications Technology (MCT), and the Ministryof Youth Development.The sector faces the following challenges: Insufficient and late release of funds for both administration and provision ofinfrastructure Land availability and other problems associated with land acquisition for buildingyouths centres Incoherence in sports policies and programmes High rate of uncompleted projects Lack of comprehensive and reliable data on the youths and youths NGOs across thecountry, which poses a challenge for planning Limited collaboration with relevant MDAs in addressing challenges faced by the youths.
  • 215. 21521513.7 Sports DevelopmentSports touch the hearts of millions of people. They promote national unity and image. Anefficient sports system will assist in nation building, provide youths empowerment, wealthcreation, employment generation and health and social mobilization. It is obvious that thephysical fitness and wellbeing of Nigerians are a function of sports and sporting activities. Theexpectation from the sub sector is to develop sports to contribute to the growth anddevelopment of the Nigerian economy. The overall objective of sports in Nigeria is to becomeone of the 20 best sporting nations of the world.The sports sector has a mixed grill of exciting memories and disheartening experiences whereat the 2012 Olympics, Nigeria won no medals, and barely 3 weeks after the paralympians hadraised the profile to 13 medals; six (6) gold, five (5) silver and one (1) bronze. In football,Nigeria won the 2013 Africa Cup of Nations held in South Africa. In 2012, the 18thNationalSports Festival, EKO 2012, held in Lagos State. We recorded the highest number ofparticipants ever in the history of the festival. 11,045 athletes and officials from all the 36states and the FCT participated. The Falconets made it to the semi-finals of the Women U-20World Cup in Japan.President Goodluck Ebere Jonathan with official and players of the 2013 AFCON TeamThe Golden Eaglets won silver for the 2013 African U-17 Championship in Algeria. Nigeria wongold and silver medals at the 2012 World Chess Olympiad in Turkey. Nigeria emerged 3rdatthe 2012 Senior African Wrestling Championship in Morocco. To improve Nigeria’sperformance in sports, a Presidential Sports Sector Retreat was held, where a strategic andsustainable sports development and funding plan was fashioned out, to raise a pool of talentsand to put Nigeria back on the global sports map. New strategic management activities toenhance qualitative performance were introduced, which included the following: capacitybuilding and early talent detection.
  • 216. 216216The new, strategic management activities for qualitative performance and mass participationare the capacity building of coaches and administrators, early talent detection anddevelopment, policy direction on partnership and collaboration, sports facilities maintenance,central national sports programmes, and national sports performance monitoring andevaluation.There is a growing awareness of the importance of sporting activities. More forms ofcompetitive sports have been introduced and facilities have continued to be improved andexpanded both at the federal and state levels. The idea of a zonal network of federal stadiahas been accepted, with locations in Kaduna, Lagos, Enugu and Abuja.All the federal stadia are not in good shape. Another challenge which still remains in oursports development is the organization of professional sports in accordance with an alreadyaccepted governmental policy. There is also the growing neglect of sports as a necessary partof general education in our schools. If it is realized that national heroes in sports invariablyemerge from lower levels of the school system, then the importance of regarding sports as anintegral part of the learning process at the general educational level becomes rather obvious.Also, school sports has taken a greater stride as many schools are now engaging in sportscompetition in order to identify talented sports children. Some sports enthusiasts are huntingfor talented footballers and they are going to various schools for this purpose.A National Data Base for coaches in the six geo-political zones has been developed. This is toenable the National Sports Commission (NSC) establish a National Coaches Council. This willserve as a clearing house to co-ordinate, certify/licence, regulate and control the activities ofcoaches in Nigeria. It will also provide leverage for the selection of our coaches forinternational sporting engagements, from time to time. Some of the challenges facing thesector, during the period under review are:i. Absence of an active base of sports development in educational institutions and thecommunitiesii. Lack of both institutional and human capacity for sports developmentiii. Inadequate sports management coordination and administrationiv. Too frequent changes of sports administratorsv. Absence of legislative backing to the establishment of the National Sports Commissionvi. Inadequate corporate supportvii. Absence of deliberate policy on talent identification and developmentviii. Non-functional database for sports planning and developmentix. Lack of adequate funding.Efforts will be made to work closely with the Ministries of Education at both the Federal andStates level to ensure that school sports are given increased attention, especially atcompetitive levels. There should be a new consciousness to encourage successful performancethrough celebration of national athletes as heroes and heroines by encouraging the States tooffer generous educational and health insurance coverage for their athletes, encouraging allgovernments to create award and recognition schemes for individuals, advocating for
  • 217. 217217institutional and organizational contributions to sports development, training and talentsdiscovery; creation of a hall of fame for the different sports; and naming of streets,monuments and landmarks after outstanding sports men and women who have brought honourto the country. In future, the sustenance of Nigeria’s achievements in sports should beensured, through deliberate national efforts to develop a comprehensive sports master plan.13.8 Environment SectorEnvironment sustainability is critical to the development of the Nigerian economy and thesocial well-being of its citizenry. The proper management of the environment has thepotential to support the growth and development of the other sectors of the economy. On theother hand, its improper handling can result in poor performance of the economy, in additionto creating serious hazards and threats to human existence and survival. The currentAdministration is determined to preserve the environment for sustainable socio-economicdevelopment, with the following broad objectives: strengthen environmental governance;promote environmental education and awareness and optimize economic benefits fromsustainable environmental management.The key targets of the Government in the area of sustainable environment include: The implementation of the National Biodiversity Action Plan will ensure that Nigeriaattains the 25 percent vegetation cover and enhance biodiversity enrichment andconservation thereby promoting community livelihood by 2015 Establishment of 15-row Greenbelt in 8 States - Borno, Gombe, Jigawa, Kano, Kebbi,Sokoto, Yobe and Zamfara (80km in each of the 8 States) Presidential Initiative on Afforestation in 11 Frontline States – Adamawa, Bauchi,Borno, Gombe, Jigawa, Kano, katsina, kebbi, Sokoto, Yobe, and Zamfara; Increase Nigeria’s forest cover from the present 6 percent to 10 percent by 2013; Reduce environmental pollution related health risks by at least 25 percent by 2013; Reduce loses and impact due to flood and draught by 10 percent by 2013; and Increase public information, education and participation in environment among 25percent of the population by 2013;The Government implemented a number of initiatives in the area of environmentalsustainability during the period under review. The key achievements of the sector include thefollowing: Development and equipping of 4 numbers of reference laboratories across thecountry Development of National Green House Gas Inventory System and purchase ofgreen gas measurement equipment Establishment of a 1500km great green wall in the frontline States Acquisition of environmental compliance monitoring equipment and accessories Establishment of procedures for Clean Development Mechanism (CDM) andgeneration of 20 CDM projects in 2012
  • 218. 218218 Construction of inland erosion control structures in various locationsnationwide, to safeguard infrastructure, reclaim agricultural land and protectlives and property which, have reached 50 percent completion Construction of flood control structures in various locations nationwide toproperly channel flood water basins and safeguard infrastructure, reclaimagricultural land, protect lives and property, which have reached 50 percentcompletion Construction of coastal and shoreline protection structures along the nation’scoastline and major waterways in the country, to safeguard infrastructure andprotect lives and property, which are 60 percent completed Installation of automated and community based Flood Early Warning Systems(FEWS) equipment along the nation’s river basins nationwide, for real timeforecasting of floods to safeguard and protect lives and property, which are 60percent completedDespite the achievements recorded in this sector, the country still faces a number ofchallenges, which include: land degradation, flooding, drought, desertification, gully andcoastal erosion and loss of biodiversity. Other challenges are environmental health andsafety, urban waste, pollution, climate change and ozone depletion.13.9 Labour and ProductivityIndustrial peace and harmony as well as enhanced productivity of the citizens in a country arecritical to sustained growth and development. They facilitate production and enhancecompetitiveness, thereby providing employment and export for any economy. Nigeria’s labourforce has continued to grow, in line with the growth in population and natural age-specifictransition in the economy. The country is currently facing the challenges of unemploymentand social exclusion, that are traceable to issues of labour and productivity. Althoughsustaining and improving upon the recent expansion in economic activity is important,strengthening both forward and backward linkages among the sectors is a more criticalrequirement for pro-poor growth and poverty reduction. This has been highlighted in theTransformation Agenda.The strategic goals for Labour and Productivity during the period are: promoting industrial peace and harmony; facilitating social security and safety nets; creating high quality job opportunities; and promoting occupational safety and health protection of the workforce andinfrastructure.The key targets of the sector include:i. Create one million jobs annually
  • 219. 219219ii. Develop skills and competencies of the work force by 10 percent annually by the year2020iii. Expose 50 percent of students to Entrepreneur Development Programmesiv. Develop 74,000 to 100,000 new entrepreneurs annuallyv. Reduce annually the spate of industrial actions in the nation by 25 percentvi. Curb unfair labour practices emanating from casualization at an annual rate of 10percentvii. Reduce the number of factory accidents and injuries by 10 percent annuallyviii. Increase the number of regular inspection of work places nationwide and enforcementof labour laws by 10 percent annuallyix. Provide skills upgrade to 10 percent of informal operators per yearx. Achieve 20 percent conversion rate from informal to formal businesses annuallyThe key achievements of current Administration in the area of labour and productivityinclude:i. Completely and successfully resolved 96 disputes representing 85 percent of the 213trade disputes apprehended during the period, while 17 of the disputes representing15 percent were pending at various stages of mediation, conciliation and arbitration,at the National Industrial Court;ii. Trained 3,126 persons in long term, basic education programmes, including theNational Diploma in industrial relations, to enhance workers’ career aspirations andprogression;iii. Established relations with 10 international agencies globally for collaboration onlabour and industrial relations matters;iv. Increase of 40 percent in the number of research and publications done by MichealImoudu National institute of Labour Studies (MINILS), as a result of improved trainingin research;v. 5,337 persons benefited from education from labour agencies, leading to a 57.4percentage change in education development in labour issues and also resettled 1,639skilled beneficiaries, leading to a 16 percent change in the number of skilled personssuccessfully resettled;vi. Obtained approval for all FEC contract awards to mandatorily indicate the localemployment content. This has led to the generation of about 198,534 jobs nationwideas at April 2012;vii. Established National Electronic Labour exchange, to enable the generation of accuratestatistics of jobless youths for proper employment policies and planning. As a result,the Ministry of labour and Productivity has already recorded a total of 6,952 or 97.53percent registration of the number of applications received from public and privateemployment agencies;viii. Issued 150 new recruiters licenses;ix. Conducted skills acquisition training for 139,371 employed candidates in vocational,technical and agric trades and provided entrepreneurial skills acquisition training for75,640 tertiary students and artisans;
  • 220. 220220x. Provided 4,379 soft loans to set up micro and cottage enterprises and 3,255 transientjobs for graduates of tertiary institutions;xi. Offered 53,925 employment counselling services to the unemployed at various jobcentres;xii. Constructed three agric skills training centres in Jigawa, Zamfara and cross riverStates and rehabilitated 10 agric skills training centres in Abia, Ebonyi, Kaduna,Benue, Oyo, Kwara, Taraba, Delta, Ogun and Kano States.xiii. Construction of 9 MDG/NDE skills acquisition centres in each of the three SenatorialDistricts in Akwa Ibom, Ondo, and Nasarawa States;xiv. Commenced the construction of 10 model skills acquisition centres which are atvarious stages of completion in Katsina, Sokoto, Yobe, FCT, Delta, Anambra, Rivers,Kwara, Ekiti and Oyo States;xv. Trained a total of 276,820 persons under the various programmes of the NDE, duringthe period under review;xvi. A total of 9,409,259 persons benefited from various social security payments by theNigeria Social Trust Fund (NSITF), in the areas of compensation for death, injuries,mental stress, occupational disease, etc;xvii. Established Enugu State Office of National Productivity Centre, bringing the number to11 offices; while the construction of the office in two other States of Abia and AkwaIbom are under consideration;xviii. Validated the National Policy and Action Plan on the elimination of the worst forms ofchild labour in Nigeria, in December 2011 andxix. Conducted 6,522 inspections of work places across the country during the period underreview. This resulted in the investigation of 72 accidents, issuance of 10 prohibitionnotices, and prosecution of 3 cases, among others. This led to a significant drop in thenumber of man-days lost due to industrial accidents, injuries and sickness, during theperiod under review.Given the recent economic crisis experienced globally, particularly concerning employment,labour related crises increased in Nigeria during the period under review. As a result, thenumber of trade disputes apprehended increased by 88.5 percent from 113 in 2011 to 213 in2012, which posed a greater challenge to government-labour relations during the periodunder review and resulted in increased resistance from organized labour.The Government is, however, committed to improving labour and productivity related issuesin Nigeria. The FEC has already granted approval for the development of the National ActionPlan on Employment Creation (NAPEC) that would be incorporated into the nationaldevelopment plan and is aimed at creating approximately five million jobs yearly, in the shortrun. The Government has equally formulated a National Policy on Productivity, aimed atstimulating and institutionalizing productivity culture and consciousness in both the publicand private sectors of the economy. In addition, the Government is increasingly adopting agreater human face, in dealing with labour related issues, to enable effective communicationand information sharing, as the bedrock of social dialogue with stakeholders.
  • 221. 22122113.10: REGIONAL DEVELOPMENTRegional Development is a core objective in the NV 20:2020 and TA. Critical issues such aspromoting sustainable development of the regions and environment degradation, erosion, soilleashing, landslides and desertification are paramount.The Niger Delta and Federal Capital Territory (FCT) are two of the critical institutions underthis sector. The present administration has committed itself to the full implementation andsustenance of the FCT and Niger Delta master plans.13.10.1: FEDERAL CAPITAL TERITORYInitially intended to house diplomatic missions, ministries, the headquarters of the civilservice, and the three branches of the federal government, namely executive, legislative andthe judicial, all three rooted at the foot of the impressive Aso Rock. Its design provided for afour phase development with the city divided into sectors, and further sub divided intodistricts. It was projected that each sector would accommodate between 100,000 and250,000 people. Thus the city would have a population of 1.6 million people and a total of 3.1million people at the end of phases one and two.The Federal Capital Territory Authority is set up to effectively manage the administration ofthe FCT and is expected, among other things, to provide critical infrastructure, variousservices to the FCT residents, wealth creation and poverty reduction, ensure safe and secureenvironment, etc.The FCTA through its provision of critical infrastructure, has been able to reduce the traveltime within the FCT as the travel time between the Airport/Kubwa to the city is now 30minsand the rate of accident has reduced by more than half.In the provision of critical infrastructure the FCT Administration has been able to createemployment opportunities for skilled and unskilled labour to about 57,600 persons. The FCTalso has been able to provide access to 5,824 commercial and residential plots in Jahi, Wuye,Kagini, Maitama extension and katampe Districts of the Federal Capital City, in addition toproviding ready access to about 2,300 plots for development of building structures in Kubwa,Bwari and Karshi satellite towns.There has been continuous installation of solar powered road studs (1,313 installed),delineators (1,050 installed), solar warning lights (20 installed), anti-glare curtains (1,800installed) on major roads to regulate human and vehicular traffic. Also, three bus operatorshave been licensed for high capacity operations in the city. NURTW (40 buses), AUMTCO (200Buses) and FABREM (60 Buses) have started operation in the daily movement of people. In theprovision of taxi services four operators (NURTW, PAT, Print Field, and City Cab) provideregular taxi services in the FCT.In the area of Transport services the FCT Administration has been able to achieve thefollowing:
  • 222. 222222 10 percent reduction in accidents on the roads About 1,200 jobs were created through Rail Project, on street parking and operatorslicenses for buses and taxis 65 percent reduction in traffic congestion Easy movement of goods and services Improved security on the highway Reduction in traffic congestion Orderliness and free flow of trafficThe gross school enrolment ratio in the FCT is at 27.5 percent for ECC, 64.1 percent forprimary, 67.9 percent for secondary and 44.0 percent for the senior secondary, all surpassingits set target for each category. However, the retention rate for FCT is 97.7 percent forprimary, 98.2 percent for junior secondary and 96.2 percent for the senior secondarycategory; which is impressive though not meeting up with its set target of 100 percent for allcategories. The pupil/student ratio has also been impressive as FCT was able to achieve 1:24,1:19 and 1:14 for primary, junior and senior secondary respectively with all categories havinga uniform target 1:35. The examination pass rate for JSCE is 94.4 percent surpassing its targetof 91.6 percent while for WAEC and NECO, the pass rate is 38.2 percent and the target is 21.0percent.The Under 5 mortality rate per 1000 live births in the FCT has improved as the mortality rateis 150/1000 doing better than the target of 170/1000. Also, the maternal mortality ratio per100,000 live births is 211/100,000 showing an improvement from the 2010 and 2011 ratio of378/100,000 and 375/100,000 respectively. The FCTA equipped 500 youths that went throughvocational training skills, rehabilitated and empowered 300 physically challenged,economically empowered 1000 women, and reduced social menace within the FCT by 45percent. For all these, the FCT surpassed its entire target on these services. The populationwith access to potable water supply in the rural area has improved when comparing theprevious years. For 2012, it supplied 63 percent of the population, though not able to meet itsset target of 68 percent but surpassed its 2011 achievement of 42 percent.The FCT administration created 3,220 jobs for 2012, through empowering communities butdid not meet up with the set target of 6,000 jobs. Also, 4207 youths and women trained underskills acquisition programmes which surpass its set target of 2,997. Inadequate funding and budget appropriation Infrastructure deficit as a result of over stretching of infrastructure Increasing rate of influx into the cityGovernment will intensify efforts in the areas of infrastructural provision for the satelliteareas; resettlement of people from the urban to the satellite towns; development of aneconomic framework for each national council like Abaji for inland port, Bwari as aneducational town etc. and sanitation for the whole FCT.
  • 223. 22322313.10.2: NIGER DELTAThe Niger Delta region is of significant importance to the national economy being the oil andgas base of Nigeria. Unfortunately, past development planning efforts had failed toadequately address the regions needs due to implementation lapses. In order to ensuresustainable development in the area, Government is intensifying action on propercoordination of efforts of all stakeholders towards the realization of NV 20:2020 objectives ofbringing peace and stability to the region and significantly enhances the living standards ofthe people.The security of the Niger Delta region has really improved since the inception of the presentadministration, as there had Interventions through organised security and consultativemeetings to sustain peace and security in the region; this has helped to increase oilproduction from 700,000 bpd to the current 2,500,000 bpd.The Ministry of Niger Delta Affairs is providing training opportunities for the youths in theNiger Delta. In the past year, a total of 704 youths have been sent for training, abroad andlocally, in various fields of endeavour, including agriculture, petroleum engineering,commerce, tourism, and maritime studies.Ministry of Niger Delta AffairsGraduation Ceremony of 40 Non-Militant Youths Trained in Oil & Gas at theAzimarine and General Services Centre, Ibeno, Akwa Ibom State127In the Niger Delta region there has been a visible improvement in the provision ofinfrastructures in the region in terms of roads, housing, potable water supply, electrification,etc. Construction and rehabilitation of roads are currently in progress, in the region, toenhance the movement of people, goods and services within the region. For example, work is
  • 224. 224224progressing on the East-West Road which is now at halfway into completion and remaining 50percent completion. Also, construction is on-going in respect of eleven (11) other roadsprojects which have achieved more than 22 percent completion and among them are:a. Re-construction of Elele – Owerri Road,b. Obehia-Azumini-Ukanafun Road, Abia and Akwa – Ibom Statec. Obehia-Azumini-Ukanafun Road, Abia and Akwa – Ibom State, Sec IId. Re-construction of Benin Abraka Road, Phase Ie. Construction of Orhorbor – Odurubuo, Kpakama- Bomadi Road Phase I, Gberegolor-Ogriagbene Road, Delta Statef. Rehabilitation of Okpuala – Iguruta Road, Imo and Rivers StateCompleted Imo River Bridge at East-West Road (Section III)26CompletedImoRiver BridgeStatus of the East-West Road (Section I)14COMPLETED FORMWORK FOR PILE CAP IN WATER @ PATANI BRIDGEASPHALTIC CONCRETE WEARING COURSE @ CH 4 + 450SUB-BASE (SAND CEMENT STABILIZATION) @ CH 39 + 275In reducing the housing shortage in the region and to provide affordable houses to theinhabitants of the region, the present administration is constructing a total number of 360housing units across the 9 states which are at 55 percent completion.
  • 225. 225225Ministry of Niger Delta AffairsHousing Scheme74The administration has embarked on the construction of Skills Acquisition Centres in the 9States at various stages of completion and this is aimed at training youths in the varioussectors of the economy including Oil and Gas, Tourism, Construction, Marine andAgriculture/Commerce. In line with this 701 non-militant youths have been trained locally andoverseas – 314 in Oil and Gas, 270 in Maritime, 90 in Agriculture.Also, the Government through the Ministry of Niger Delta Affairs, has contacted eleven (11)major companies in the Oil and Gas for either permanent employment or on industrialattachment basis. Likewise, the Nigerian Maritime Administration and Safety Agency (NIMASA)have been contacted to place all the youths trained in Maritime Studies on industrialattachment on board sea-going vessels. There is also a Niger Delta Collaborative DevelopmentFramework (NDCDF), a comprehensive and coherent programme investment in the social andpublic sectors of the various communities of the Niger Delta. All these are aimed at reducingunemployment especially among the youth by keeping them gainfully employed.Ministry of Niger Delta Affairs••Status of the Skills Acquisition Centres56Rectors Residences almost completedDeputy Rectors Residences almost completed Semi detached BungalowsColumn and Roof beam have been constructed
  • 226. 226226In its effort to improving the living standard of the Niger Delta inhabitants’, effort has beenmade to provide 37 communities with potable water and electricity supply. Water supply andElectrification projects are also ongoing in the following locations.a. Idoro – Eaten – Itam Water Project, Akwa-Ibom Stateb. Owerri Urban Water Schemec. Water project at Ukparam, Ondo Stated. Ubane Utanga Water Project, Cross Rivers Statee. Electrification Project in Khana LGA, Rivers Statef. Electrification Project in Eleme, Rivers Stateg. Eri Electrification Project, Cross Rivers Stateh. Electrification – Peremabiri – Ogbokiri in Akassa, Bayelsa State.Government is carrying out the Implementation of Environmental Management and ProtectionProjects, which include the land reclamation and erosion control works project at:a. Kurutie, Gbaramatu Clan, Warri South LGA, Delta State (71 percent completion);b. Idumuje - Unor Erosion Control Project, Delta State (70 percent completion);c. Igonton – Igbanke and Oyomo/Okhelen–Awo Road, Uromi, Edo State (85 percentcompletion);d. Ibakang Nsit – Ikot Ekpo – Unyene Road, Nsit Attai in Akwa – Ibom State (48 percentcompletion); ande. Essien town – Ekorinin Community, Cross Rivers State – (35 percent completion).Also, for erosion control and improved transportation the canalization of Odobou –Ogbobagbene Creek, Burutu LGA, Delta State is ongoing; it is at 30 percent completion. Inaddition, to the efforts towards land reclamation and erosion control there is ongoingconsultancies for thirteen (13) land reclamation/shoreline protection/erosion control projectswhich is at 70 percent level of completion.Similarly, studies on the remediation, rehabilitation and restoration of thirty-three (33) Oilimpacted sites in the Niger Delta is 100 percent completed; and so far the Remediation,Rehabilitation and Restoration of the Oil Impacted Site at Stubbs Creek, Eket, Akwa-IbomState – 26 percent completion.
  • 227. 227227Ministry of Niger Delta Affairs 110PRE- PROJECT CONDITIONSEroded land to be reclaimed - 6HaDrains to be constructed - 9kmPROJECT DELIVERABLESEroded land reclaimed - 6HaDrains constructed - 9kmPre- Construction Photo 1: Gully Along Ibakang Road Nsit AtaiPre- Construction Photo 2: Gully Along Ikot Ekpo Road Nsit AtaiMinistry of Niger Delta AffairsLand Reclamation / Erosion Control at Essien Town – Ekorinim Community, CrossRiver State113Work In Progress Photo No 1: Land Reclamation At Essien TownCurrent Status Photo 1: Constructed Drains At Essien Town Current Status Photo 2: Reclaimed Land With Culvert To Drain WaterWork In Progress Photo No 2: Culvert Construction At EssienTownFurthermore, the administration has signed a Memorandum of Understanding (MOU) withOSTIM of Turkey to facilitate the establishment of Industrial Parks in each of the region. EachPark will comprise 5,000 SMEs to manufacture and produce goods and services in over 100sectors of the economy. The Industrial Parks will employ thousands of Niger Delta youth inaddition to other multiplier effects.Land Reclamation and Erosion Control at Ibakang Nsit-Ikot Ekpo-Unyehe Road,Nsit Attasi LGA,Akwa Ibom State Nsit Attai LGA, Akwa Ibom State
  • 228. 228228CHAPTER FOURTEEN: ENSURING SECURITY AND SAFETY OF LIVES FOR ALL NIGERIANSThe primary duty of any Government in a world of startling change remains the security ofthe country and its people. Security impacts directly on all facets of human endeavor andplays a crucial role in governance, economic development and the welfare of the society ingeneral. It also involves providing and maintaining internal surveillance and the territorialintegrity of the nation and ensuring that safety of lives and property is guaranteed. It is inthis context that the Transformation Agenda of this Government places great importance onbuilding modern, well-equipped and well-motivated security agencies that are capable ofprotecting the citizens internally and defending the country’s territorial integrity.The approach to the management of security is multi-sectoral, as it involves several securityand intelligence agencies. In Nigeria the offices involved are the Department of State Service(DSS), National Intelligence Agency (NIA), Defence Intelligence Agency (DIA), Nigerian PoliceForce (NPF), Nigerian Armed Forces (NAF), and other para-military organisations. The keygoals of these agencies are to prevent crime and protect lives and property, uphold andenforce the law, control traffic and prevent external aggression.Other specific goals of the sector are to:i. shore up the capacity and capability of the law enforcement agencies, with a view toresponding promptly to national security emergencies.ii. ensure that the lives and property of the people are guaranteed against victimizationfrom both external and internal threats and attacks, in all places and at all times.iii. ensure socio-economic well-being and peaceful coexistence for all citizens, withincreased attention to human rights protection.iv. reduce crime and other social vices.v. enhance the operational and infrastructural capacity of the security enhance the training and retraining of security personnel.vii. strengthen research and development by the security training institutions and thedevelopment of new technologies.viii. ensure accurate and timely delivery of intelligence, through an efficient, reliable andproactive information system.14.1 Safe and Secure CommunityIn order to have a safe and secure nation, there must be safe and secure communities withinthe country, with focus on security agencies responsible for maintaining law and order
  • 229. 229229particularly the Nigeria Police Force. The key strategies adopted by Government to improvethe safety and security of Nigerians includes: enhancing funding for the operational and infrastructural capacity of the securityservices; enhancing funding for training, retraining and staff welfare; and improving public confidence in the Nigerian Police.The key achievements in the area of maintaining a Safe and Secure Community include:I. The Police Ports Authority Command and the Inland Waterways Formation weremerged to pave the way for the establishment of a Maritime Police Command. TheCommand is charged with the responsibility for maintaining law and order andproviding adequate security in the nation’s ports and harbours. It is also charged withthe task of tackling contemporary security challenges such as armed robbery, piracy,kidnapping, gun running and other related crimes in our creeks, harbours andterritorial waterways;II. Increase in the number of police stations across the country to improve access by thepopulace. An Anti-Terrorism Unit has also been established in the Nigeria Police tocurb the increasing incidence of terrorism in the country;III. Training of 42,772 officers and men in the areas of crisis management in 2012. Thisrepresents 327.72 percent increase above the 10,000 target for 2012 and 751.18percent above the 5,025 in 2011. In addition, the Nigerian Police Academy in Kano hasbeen upgraded to a degree awarding Institution;IV. Procurement and equipping of operational vehicles to address the current securitychallenges. In this regard, three helicopters, 275 toyota hilux pickups and 33 AmouredPersonnel Carriers (APC) were procured for the Police in the first quarter, 2013;V. recovering of large quantities of illegal arms in various locations across the country;VI. Installation and deployment of over 2000 video surveillance cameras (CCTV) in Abujaand Lagos, with 36 nos equipment rooms and two main switch centers, in 2012.VII. Video conferencing systems were established in 36 commands, national Headquartersand the Ministry of Police Affairs to enhance intelligence gathering and communicationamong the various commands, while e-Police and Coalition Emergency ResponseSubsystems (CERS) were delivered in 37 commands. This has led to a drop in thenumber of reported crimes in the country by 94.7 percent from 177,271 recorded in2011 to 9,343 in 2012;VIII. Emergency response time improved to 15 – 20 minutes in 2012 from 20 – 25 minutestargeted for 2012 and 25 – 30 minutes witnessed in 2011; andIX. Significant progress has been made in the area of funds generation through othersources. The NPF generated funds from donors, private sector partnerships andinternally generated revenue to the tune of N7.872 billion in 2012 alone or 490.47percent of the N1.605 billion target in the same period.
  • 230. 230230Despite these achievements, death due to violence increased marginally from 1,046 in 2011to 1,091 in 2012, falling short of the 800 planned target and also higher than the 756 recordedin 2010. This can be attributed to the bombings and socio ethnic violence recorded in parts ofBorno, Plateau, Kaduna and other Northern parts of the country.To further combat the rising menace of terrorism and violent crimes, the Government plansto procure additional helicopters to cover the remaining States, during 2013 and 2014.Similarly, about 2,000 security operatives have been earmarked for training in anti-terrorism,with a view to combating terrorism activities in Nigeria, particularly the insurgency in theNorth. Community policing is also being encouraged to ensure friendly, fairer and firmerinteractions between the police and the public. Effort is also being made to guaranteecitizens increasing access to justice (the law and the courts), with or without the interventionof lawyers, by simplifying proceedings, strengthening the law and encouraging the use ofalternative dispute resolution mechanisms.Marine Police Boat mounted with long-range guns and Police APCPresident Goodluck Jonathan Lunching Helicopters, APCs and operation vehicle to police during 2013 police week
  • 231. 231231Efforts are being made also to ensure sustenance of policies and strategies in addressinginternal security challenges through the implementation of key initiatives in the sector;procurement of modern security equipment and facilities, capacity building, effectivecollaboration within the security services and the development and implementation of aperformance based monitoring system for Nigerian Police operations. Others include: thedevelopment of a National Policy on Public Security and Safety, expansion of the scope ofcoverage of Community Policing, as well as enhancing intelligence gathering, to strengthenthe capability of the police in foiling activities of criminals and insurgents.14.1.1 Safe and Secure Nation (Internal Perspective)Over the years, external threats to the country’s security have been minimal. However,internal security has posed a significant challenge, especially in the areas of internalconflicts, notably religious and ethnic violence; terrorism; kidnapping; political violence; andpipelines vandalisation. In addition, the illegal movement of small arms across the countryhas fuelled violence and crimes. These have had a negative effect on the country’s image anddevelopment as they have contributed to the perception of Nigeria as a risky investmentdestination.The strategic objectives of the Government in the area of safe and secure nation as outlinedin the Transformation Agenda include: development and implementation of a comprehensive, effective and efficient crimeprevention and control strategy; improvement in the administration of justice, enhancement of social justice andenhancement of national security; and strengthening of the relevant security services to respond effectively to emergenciesand national and man-made disasters.The key achievements in the area of maintaining Safe and Secure nation (internalperspective) include:I. Decrease in prison congestion, as result of the reduction in the percentage ofrecidivism by convicts. This is largely attributed to the rate of increased training ofinmates on vocational skills as the number of inmates trained increased slightly, from515 inmates in 2010 to 519 in 2011;II. 50 inmates at various prisons in Nigeria currently undergoing National Open Universityof Nigeria Programme while 20 prison officers are currently serving outside the countryon United Nations peace keeping mission;III. Establishment of new fire stations and installation of automatic fire alerts, as well asthe training and re-training of officers in modern trends of combating fire outbreak andrescue operations. This has reduced the average response time to fire incidents from 40
  • 232. 232232minutes in 2010 to 30 minutes and 25 minutes in 2011 and 2012 respectively. Equally,the number of lives lost during fire and emergency related situations dropped by ninepercent from 288 lives in 2010 to 262 and 186 in 2011 and 2012 respectively;IV. Procurement of 240 pairs of fire resistant jackets, trousers, helmet and boots, 110 self-contained breathing apparatus, 25 hand-held mobile radio and two terminal imagingequipment all in a bid to ensure safety of firefighters in Nigeria;V. Increased provision of patrol infrastructure and gadgets leading to improvement in thepatrol presence of the Federal Road Safety Commission (FRSC) for every 20km stretchof road from 131km in 2010 to 106km in 2011. This has led to a reduction of RoadTraffic Crashes (RTC) from 5,217 in 2010 to 4,765 in 2011;VI. Reduction in the average time taken to process e-passports, from 48 hours in 2010 to 36hours in 2011 and 2012, as a result of the deployment of modern equipment and stafftraining by the Nigeria Immigration Service (NIS);VII. Reduction in the number illegal immigrants in the country as a result of therepatriation as well as denial of entry for those that do not have properdocumentation. For example, 5,768 illegal immigrants were repatriated in 2011 asagainst 3,254 in 2010 representing a 77 percent increase;VIII. Control of illegal immigrants through closure of some borders in Borno and Yobe States,resulting in the refused of entry of about 10,401 Nigeriens, Beninions, andCamerounians, amongst others, were while 8,337 Nigerians were repatriated in 2012;IX. Initiated the construction of Structured Border Control Plazas in the 84 regular/legal orofficially identified entry routes in Nigeria, resuscitation of two of the three aircrafts ofthe NIS for border patrols and electronic Passenger Registration System (ePaRs) is beingextended to land borders for audit trail of passengers;X. Continuous screening of persons crossing Nigerian borders and apprehending suspectedhuman traffickers leading to the arrest of 60 suspected human traffickers who werehanded over to NAPTIP for prosecution in 2012;XI. Installation of International Civil Aviation Organization Public Key Directory (ICAO-PKD)Global Platform at all Nigerian international airports to provide the authentication ofNigerian e-passport and other electronic Machine Readable Documents (MRTD) of othercountries;XII. Approval of a new visa policy that allows notable businessmen (frequent travelers) andtop management staff of Multinational organizations to be issued entry visas at pointsof entry. Similarly citizens of countries with which Nigeria has visa agreements arebeing issued entry visa at points of entry;XIII. Increase in the number of registered private security agencies to complement theeffort of the government in ensuring the security of lives and property, to 607 in 2011from 278 in 2010. This represents an increase of about 118 percent over the previousyear and has led to the creation of jobs for teeming Nigerian youths;XIV. Reduction in the incidence of pipeline vandalization from 6,815 in 2010 to 6,015 and4812 in 2011 and 2012 respectively. This represents a decrease of 11 percent and 20percent reduction in 2011 and 2012 respectively due to increased surveillance ofpipeline facilities, rigorous sensitization campaigns on the effect of pipeline
  • 233. 233233vandalization to the public as well as recruitment, training and re-training of officers ofthe Nigeria Security and Civil Defence Corps (NSCDC) on anti-vandalization activities;XV. Automation of citizenship, business permit and expatriate quota administration leadingto faster and timely processing of application;XVI. Completion and furnishing of the passport complex annex in December 2012 and thecompletion of a block of 18 one bedroom flats as junior staff quarters as well as accessroads and drainage at the Senior Staff quarters at the Immigration ServiceHeadquarters in Sauka Abuja;XVII. Completion of library/ICT centre and a block of 8 numbers 2-Bedroom flats at serviceHeadquarters in Abuja; 10 rooms hostel at immigration training school, Ahoada, RiversState and passport office at Alausa, Lagos;XVIII. Completion a storey block for 212 inmate at Kano central prison, a story building for136 inmate at Aba prison, and a storey cell block at Kaduna prison (90 percentcompletion), drug compounding laboratory (92 percent completed), and prison barrackshospital (over 95 percent completion);XIX. Completed 101 units of two and three bedroom flats for senior and junior staff in prisonvillage, Abuja; andXX. Completion of block of 6 units of 2 bedroom flat, administrative block and indoorsporting complex at Sauka Abuja and a story building administration bloc and 36 unitsof 1 bedroom at Katsina by the Nigerian Security and Civil Defence Corps.A number of challenges to internal safe and secured nation still remain, however. Trafficcrash fatalities per 100,000 population increased from 4 to 5 persons between 2010 and 2011.The incidences of pipeline vandalisation, sporadic attacks on security outfits, kidnapping andother violent crimes were also of great concern to the Government.To reduce fire related loss of lives and property, the Government is making effort to developa National Fire Academy to enhance the capacity of the Fire Service personnel. Also, it willintensify effort towards the procurement of firefighting equipment, enforcement of theNational Fire Safety Code, establishment of a Fire Disaster Response Centre in the 6 Geo-political zones and embarking on enlightenment campaigns on fire related issues, as well asthe establishment of automatic fire alert systems in all public and private premises.The Government will also continue to provide and maintain adequate operational equipment,recruitment, training and re-training of personnel to equip the FRSC with 21stcentury skillsand competence in managing road traffic activities. Rehabilitation of all Nigerian roads andprovision of road infrastructure to minimize the rate of road accidents will also be accordedpriority. Aerial surveillance equipment for the monitoring of movement of passengers acrossthe country would be procured to secure Nigeria’s borders.
  • 234. 23423414.1.2 Safe and Secure Nation (External Perspective)The constitutional roles of the Armed Forces are primarily to loyally defend and protect thesovereignty, territory and people of Nigeria against external aggression. Their secondary roleis to assist the civil authorities in maintaining law and order, whenever necessary. TheGovernment has further developed the National Defence Policy to facilitate the actualizationof the set roles, in line with the Transformation Agenda.The key goals in the area of a safe and secure nation (external perspective) are: enhance funding for the operational and infrastructural capacity of the securityservices; strengthen the Research and Development (R&D) facilities of the security traininginstitutions for optimal innovation and development of new technologies; the Defence Industries Corporation (DICON) to produce all the small and medium armsand equipment for the defence and security services by 2013. delivery of accurate and timely intelligence, through an efficient, reliable andproactive information gathering system.Nigeria’s external contribution to world peace and security, especially in Africa has beenremarkable. In this regard, the armed forces of Nigeria (AFN) are participating in nine UnitedNations on-going peace keeping operations, within and outside Africa.I. Construction of an indigenous amoured personnel carrier through a team of NigeriaArmy electrical and mechanical engineer personnel at reduced cost and recentlycommissioned by Mr. President in Kaduna as well as refurbishment of 7 number shilkaanti-aircraft guns in kachia by the Nigerian Army electrical and mechanical engineers;II. Establishment of Nigeria Army Dog Centre at Ipaja, Lagos;MR PRESIDENT AT THE COMMISSIONING OFNEWLY CONSTRUCTED ARMY INDIGENOUS APCRefurbished Shilka Guns
  • 235. 235235III. Refurbishment of 36 SCORPIO Combat Vehicles Reconnaissance (Tracked) and 36MOWAGS APC located in Bauchi;IV. Acquisition of 8 K-38 boats introduced to complement the Nigeria Army in fightingeconomic and violent crimes in Calabar;V. Rehabilitation and construction of Barracks across the country through direct laboursuch as Goodluck Jonathan Barracks in Ohafia, Abia State and Kuje Barracks in theFCT;VI. Fabrication of locally made electric target rangeVII. Acquisition of 115m multi-purpose frigate formerly United States Coast Guard Cutter(USCGC) CHASE, now christened Nigerian Navy Ship (NNS) THUNDER. The ship wascommissioned by the First Lady of the Federal Republic of Nigeria on 19 January 2012.Government also commissioned the first locally built Seaward Defence Boat, NNSANDONI by Nigerian Naval Dockyard on 1 June 2012;Commissioning of Na War Dog CentreK-38 Boat Rehabilitation and construction of barracks
  • 236. 236236VIII. Laying of keel for the construction of the second Seaward Defence Boat by thePresident, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeriaon 1 June 2012 and Acquisition of 2 Shaldag Boats increasing the number of ShaldagBoats in the NN inventory to 3;IX. Acquisition of 2 Offshore Patrol Vessels (OPVs) from Chinese Ship Building Company.About 40 percent totalling N10 billion has been paid by the Federal Government out ofthe total cost of N24 billion for the 2 OPVs. The balance has been captured in the 2013Budget. Construction of one tugboat by Nigerian Naval Shipyard, Port Harcourt;MR PRESIDENT APPENDING HIS SIGNATURE ON THEKEEL OF THE SECOND SEAWARD DEFENCE BOATONE OF THE 3 SHALDAG BOATS RECENTLY ACQUIREDBY THE NIGERIAN NAVY ON PATROLNNS THUNDERLOCALLY MADE ELECTRIC TARGET RANGE
  • 237. 237237X. Successful hosting of a multinational maritime exercise code-named ExerciseOBANGAME EXPRESS in March 2012 off the coast of Calabar;XI. Initiated Operation Prosperity in September 2011 to check the increasing level ofpiracy, hijacking and illegal bunkering along Republic of Benin and Nigeria waters. Theoperation has helped to reduce criminality along the border leading to increasedcommercial maritime activities in the area. The operations include EX FARAUTA in 11-18 NOV 2012 and EX FARAUTA which took place in the gulf of Guinea from 11-18 Nov,2012. Over 12 ships were interrogated but only 3 were arrested (AEGAN HORIZON,ANDROSSA and Enery 6503);XII. The Nigeria Navy maintained presence at sea for 8 days and tested command, controland communication system of Nigerian ships as well as sustain its logistic support.After FARAUTA, the operations command carried out 3 days exercise each at thefollowing areas: IDIKARA – Eastern Naval Command, ICHUNTA – Western Navalcommand and SAITU DOPAMO – Central Naval Command;XIII. Streamlining of NN clearance to oil marketers thereby forestalling duplication/scam inthe oil subsidy regime and Establishment of the Naval Standards and EvaluationsBranch and provision of requisite infrastructure for the Branch.XIV. Reactivation and upgrade of the dialysis centre at naval medical centre, VictoriaIsland, Lagos and successfully conducted the 2012 fleet evaluation exercise code-named Exercise FARAUTA, a 7 day exercise to clamp down on oil thieves;XV. Periodic depot maintenance on C-130H aircraft NAF 918 by Messrs Marshall Aerospaceof Cambridge and conduct of PDM on another C-130H, NAF 913Messrs SABENA at Ikejain conjunction with the NAF AETSL is currently.XVI. Reactivation of two additional Alpha jet aircraft by the NAF through AETSL, anindigenous aeronautic company owned by the NAF resulting in substantial reduction inthe cost of PDMs.XVII. Successful installation of the A-jet engine test bench and training of NAF personnel onits operations.XVIII. Development of the first indigenously designed and built Unmanned Aerial Vehicle(UAV) in Nigeria. The UAV named AMEBO has been modified up to the current thirdversion AMEBOIIIXIX. Rehabilitated of a total of 14 Barracks nationwide including 492 number Family Unitsfor Men, 8 number Family Units for Officers and 2 number Access Roads in Ogoja andOnitsha, 30 number family Units for Senior Non-Commissioned Officers 8 numberfamily Units for Officers, NAFRC Oshodi and Games Village, Esa Oke (2 Barracks)Computer impression of the OPV orderedfrom China by Nigerian NavyA tugboat under construction at Nigerian NavalShipyard Port Harcourt
  • 238. 238238XX. Adoption of PPP initiative by DICON resulting in the establishment of DICON-Marom inpartnership with Marom Dolphin Nigeria Limited, for the manufacture of ballistic vestsand other protective wares as well as repair of night vision goggles. The new factorywas commissioned by Mr. President on 2 July 2012 as shown in the enclosed pictures.So far, DICON-Marom has supplied 2500 ballistic vests to DHQ among otherachievements. DICON is also considering proposals for the establishment of aproduction line for the Kalashnikov rifle as well as local manufacture of armouredpersonnel carriers and troop carrying vehicles.Currently, about 5000 officers and men of the Nigerian armed forces, along with relevant inmilitary hardware, are deployed in peace keeping missions including:XXI. 1592 AFN personnel in the UN mission in Liberia since 2010, with other personnelserving in the Mission as Staff Officers and UN military observers;XXII. A level two hospital in Darfur, Sudan in support of the AFN mission, manned by 63Nigerian Military medical experts;XXIII. 186 AFN personnel in the ECOWAS mission in Guinea Bissau were deployed in 2012 aspart of the military intervention force to restore normalcy to the troubled WestAfrican country. The Nigerian Government provides about $10 million annually inlogistics and financial support to the military in Guinea-Bissau, as part of its effort inconflict prevention in the sub-region;XXIV. Establishment of a multi-national Joint Task Force, a tripartite operation involvingNigeria, Chad and Niger Republic to flush out Chadian and Nigerien insurgents whooperated in the lake Chad region and to contain cross-border banditry and criminalactivities by the rebels around the international borders. Also, the task force is tocheckmate the influx of illegal arms into the country;XXV. 137 officers and senior non-commissioned officers were deployed to eight on-going UNmissions to monitor the Syrian crisis; among others; andXXVI. The level of local production of ammunition and weapons by the Defence IndustriesCorporation of Nigeria (DICON) improved slightly from 30 percent in 2010 to 35 percentin 2011, with a similar trend in 2012.In spite of the recent policies, projects, and programmes aimed at enhancing security in thecountry, certain key issues and challenges remain. For example, inadequate research and
  • 239. 239239development institutions to pursue specific national security goals have hindered theachievement of strategic outcomes related to security. The existence of a weak military-industrial-complex for the manufacture, maintenance as well as administration of operationalequipment is also a major constraint.The Government is already addressing these security challenges. Effort is being made tostrengthen DICON to carry out its mandate of producing all small and medium arms andequipment for the defence and security services. The service of the military is beingenhanced through the planned establishment of a Joint Maritime Training Centre. In addition,equipment for the disposal of Improvised Explosive Devices (IEDs) would be procured tocounter the spate of terrorism in the country. Equally, the borders would be adequatelysecured to minimize the influx of immigrants from neighboring countries. The Governmenthas established an amnesty committee to dialogue with the members of the Boko Harram as away of ending the insurgence in the Northern part of Nigeria. Also, effort is being made tosustain the implementation of the Niger Delta amnesty programme.
  • 240. 240240CHAPTER FIFTEEN: STATE GOVERNMENTSThe Nigerian constitution gives autonomy to the three tiers of government, namely Federal,State and Local. To achieve national growth and development, concerted and joint efforts arerequired of these three. Therefore, the Federal Government can only achieve its nationalaspirations by collaborating with the states and local governments.15.1 Relationship with State GovernmentsThe current administration has improved and maintained a cooperative, synergized andharmonious relationship with the other tiers of government, since inception. It has equallyencouraged the States to formulate and implement policies and programmes in line with theVision 20:2020 and the Transformation Agenda. Collaborative efforts among all tiers ofgovernment have also been made towards addressing pertinent issues militating againsteffective intergovernmental relationships through a number of interventions and initiatives.Through these interventions, the Federal Government has put in place frameworks todeliberate on issues that are of critical concern to the nation. These include:i) The National Council of State, a constitutional body chaired by Mr. President withmembership, among others, by former Presidents and Heads of State and all the 36State Governors provides the highest consultative body on a number of criticalnational issues;ii) The National Economic Council (NEC), a constitutional mechanism established toprovide for consultation and joint decision making between the federal and stategovernments on economic development matters;iii) National Economic Management Team (NEMT) was set up as an economic advisorybody of Federal Government, Private sector and State Governors representativesfor facilitating policy decisions of national interest;iv) National Council on Development Planning (NCDP), a policy body that takesdecisions on planning and development issues of mutual interests between theFederal and State Governments represented by the Honorable Minister of Planningand State Commissioners for Planning;v) The Joint Planning Board (JPB), the technical arm of the NCDP has its membershipextended to relevant Federal MDAs, private sector and development partners;
  • 241. 241241vi) Federation Account Allocation Committee (FAAC), a body for revenue sharingamong the three tiers of government for the purposes of implementing policies,projects and programmes; andvii) Other national councils on Agriculture, Education, Works, Environment, Power,Water Resources, Trade & Industry, etc, are also platforms for the federal andstates officials to consult and take decisions on matters affecting their respective,statutory mandates.The cordial relationship among the Federal and State Governments has resulted intremendous achievements during the period under review. Prominent among them are:i. Establishment of a Sovereign Wealth Fund to replace the Excess Crude Account (ECA)through a decision reached at NEC;ii. All tiers of government benefit from the gains of the partial removal of oil subsidy inthe SURE-P. This has provided funding for critical infrastructural projects and socialprojects;iii. Encouragement of sub-national governments to establish statistical agencies, leadingto the passage of laws to this effect in over 20 States as at end-2012;iv. Approval for the adoption and institutionalization of the National Monitoring andEvaluation framework and performance management system at the States;v. Establishment of a joint Federal-State monitoring and evaluation Task Force to verifyFederal agricultural and water projects as well as Tertiary Education Trust Fundprojects in 2012. This led to verification of projects, identification of needs,assessment of impact and development of strategies to complete uncompletedprojects;Team 3 Inspection of Adani Irrigation Project The Team with Contractor at the GreaterOnitsha water supply scheme
  • 242. 242242vi. Active partnership among the Federal and State Governments in the computation ofStates’ GDP, in close collaboration with the National Bureau of Statistics (NBS), NPCand NISER;vii. The approval of a National Housing and Urban Development Policy and endorsementof the framework for the Development of the National Integrated InfrastructureMaster plan (NIIMP) 2014 – 2043;viii. Joint endorsement of the National Tax Policy and Tax Payers Identification No. (TIN)to improve tax collection and remittance.Although, much has been achieved in intergovernmental cooperation in the country under thecurrent Administration, a number of challenges still exist, including the lingering disputebetween the Federal and State Governments on the management of the Excess Crude Account(ECA).Monitoring of TETFund Projects across the countryState Gross Domestic Product computation flag-off in Niger State
  • 243. 243243The government is intensifying efforts at promoting the cordial relationship with the StateGovernments, to address the challenges, especially those pertaining to enduring efficient,transparent and accountable governance. The mechanisms already put in place would helpachieve effective implementation of resolutions by all tiers. The Federal Government willcontinue to guarantee that the constitutional roles and rights of each tier of government arerespected and upheld.
  • 244. 244244CHAPTER SIXTEEN: THE PRIVATE SECTOR AND INTERNATIONAL DEVELOPMENTPARTNERSPrivate actors and international development agencies are important partners to achieve thesocio-economic goals of any country. While harnessing initiatives and investment of actors inthe private sector is needed for achieving the social and economic goals of a country, theinternational development partners are necessary for development assistance in key areas,involving financial and technical assistance. Private sector investment in competitive marketshas high potential for productivity growth, productive job creation, and poverty reduction.On the average, private sector operations create around 80 percent of all economic activitiesand jobs in most emerging economies of the world. Therefore, private investment andinitiatives in basic services, infrastructure and innovation can help provide the basic servicesand conditions that empower poor people by improving health, education, and infrastructure.Similarly, the international development partners cooperate with government inimplementing its national development priorities and agenda. Thus, both the private sectorand the international development partners serve to complement government efforts, in itsdrive to achieve national goals and aspirations.16.1 Role of private sector in the transformation agendaThe prominence accorded the private sector in the realization of the Transformation Agendaand the NV 20:2020 derives from the belief that the sector has high potential for delivering onthose programmes and projects that will lead to a fast-paced economic growth andtransformation. For instance, out of the total expected investment of N25.7 trillion over thelife of the TA, the private sector’s contribution is projected at N11.1 trillion or 43.1 percentfor 2012-2015 (see Table 16.1). This further reinforces the importance of a private sector-led,growth strategy in further accelerating the growth momentum in the country.Table 16.1: Structure of Gross Investment at Current Market Prices (N b), 2012 – 20152012 2013 2014 2015 Total(2012-2015)PerAnnum percentofTotalGross Investment 5,231.59 6,045.39 6,782.02 7,615.16 25,674.17 6,418.54 100Public SectorInvestment3,138.95 3,385.42 3,797.93 4,264.49 14,586.80 3,646.70 56.82Private SectorInvestment2,092.64 2,659.97 2,984.09 3,350.67 11,087.37 2,771.84 43.18Source: NPC
  • 245. 245245Other roles of the private sector include: Mobilization of domestic resources that will promote wealth creation and serve as acatalyst for job creation; Mobilization of private direct investment; Promotion of innovation and expanding the knowledge economy, through investmentin R&D; Engagement in public-private partnerships in critical national projects; Promotion of staff exchange programmes between private and public institutions toenhance public sector efficiency; and Provision of feedback to the public sector.16.1.1 Binding constraints on the private sectorThe existence of a number of binding constrains limits the effective performance of theprivate sector to achieve its full potential in complementing government development policyefforts. Thus, despite the sustained, high and broad-based growth recorded during the periodand the contribution of the private sector to this, the lack of conducive business environmentremains a dampening factor. Other challenges are: inadequacy of legal, regulatory andinstitutional frameworks for investment in some sectors; poor infrastructure and businesslogistics, especially inter-modal transport infrastructure; high cost and unstable power andenergy supply, leading to high overhead costs; cumbersome land titling and administrationpractices that constrain the optimisation of land as a factor of production; high domesticpublic debt, which tends to crowd out private sector borrowing, thereby undermining realsector growth; security threat to lives and property; multiple taxation; high cost of capitaland inadequate term lending; and skills mismatch between education system and industrialneeds.16.1.2 Government support to the private SectorThe Federal Government under its Transformation Agenda has outlined various strategies toimprove the business climate for the private sector and open up the sector to privateengagements. For example, the reform in the banking sector engineered by the Central Bankof Nigeria (CBN) reinforced the culture of risk management and macro-prudential supervisionwith a view to instilling private sector confidence in the financial system. In order to furtherstabilize the banking sector. Other reforms of the sector include enforcement of fullinformation disclosure and good corporate governance. In addition, the CBN intervened in thebanking sector by creating AMCON to enhance solvency in the sector and increase credit tothe private sector. Other initiatives include various sectoral schemes aimed at promotingSMEs and SME finance, power and airline intervention funds worth N300 billionentrepreneurship development centres and national financial inclusion strategy.In the area of insurance, the gaps identified in the regulatory process are being addressed.Through several initiatives, the gaps in the regulatory process have been bridged throughguidelines issued, thereby improving regulatory oversight and ensuring in-depth analysis offinancial reports. The Government is also undertaking comprehensive reform of the pension
  • 246. 246246system, that would further make available financial resources for private sector use anddeepen the financial system.To strengthen the private sector in the real estate sub-sector, the Administration is openingup the mortgage sector, particularly mortgage financing. A Mortgage Refinance Company(MRC) has been proposed to assist in resolving the financing gap. This is expected to be apublic-private partnership (PPP) arrangement, involving both local and foreign partners. Atakeoff capital of N5 billion has been pledged by the government to deliver on this initiative.The Government has also negotiated financing agreements totaling US$ 12 billion to supportthe real sector. Other interventions currently being developed and strengthened includeindustrial policy, trade policy, tariff policy, financial development and inclusion policy, andSME development policy.The Infrastructure Concession Regulatory Commission (ICRC) has been strengthened foreffective implementation of the PPP framework. Henceforth, projects to be approved forimplementation by MDAs must be validated by the ICRC, to ensure that are economicallyviable projects were handled by the private sector. The Administration has also approved thesetting up of PPP Units in all Government MDAS.Other critical roles of government in providing the enabling environment for the privatesector development are: promoting and projecting Nigeria as a safe, profitable and investment friendlydestination; proactively introducing policy/reforms designed to improve Nigeria’s business climateand global competitiveness; substantially removing legal and administrative barriers to doing business in Nigeria; diversifying FDI from oil and gas to non-oil sectors at an annual minimum of US$5billion; targeting and attracting FDI into critical priority sectors of the economy:Infrastructure, Agriculture, Solid Minerals, Manufacturing and Tourism and Hospitality; encouraging innovations that ensure effective utilization of resources for economicgrowth; taking advantage of bilateral, regional and multilateral integrations to expand Nigeriabusiness abroad; facilitating access to loanable funds at single digit for the industrial/manufacturingsector of the economy; providing a predictable, consistent and level playing National Investment Policy, toenhance the competitiveness of the business environment; proactively providing competitive and attractive incentives to attract private sectorinto industry, especially manufacturing value chains, agriculture, mining andconstruction encourage private investment through Public-Private-Partnerships for the execution ofinfrastructure projects.
  • 247. 24724716.1.3 Outcomes of government support for the private sectorAs a result of the CBN’s interventions aimed at improving private sector confidence in thefinancial system, the net foreign assets of the banking sector increased substantially fromN6.5 trillion at end of December 2010 to N9.3 trillion at end of March 2013. The Net DomesticAssets increased from N5.0 trillion at end of December 2010 to N6.0 trillion at end December2012 and N6.2 trillion at end March 2013. In addition, the Net Domestic Credit to theeconomy rose to N15.4 trillion as at end March 2013 from N14 trillion as at end December2012 and N8.7 trillion as at end December 2010.The capital market has also witnessed improvement, with the All-share Index (ASI) increasingfrom 24,770 to 27,330 and 28,078 in 2010, 2011 and 2012, respectively. Market capitalizationincreased significantly from N7.9 trillion in 2010 to N10.6 trillion in Q1, 2013. Foreign DirectInvestment increased significantly in 2011 by 46.07 percent to US$8.91 billion from US$6.10billion in 2010 despite the global economic crisis. International home remittances of workersin 2012 were valued at US$21.9 billion as at the end-December 2012 against US$20.5 billion in2011 with Nigeria ranking 4th globally in terms of worker remittances behind China,Bangladesh and Egypt.Given that the responsibility of governance is the concern of all, government requires theactive participation of the private sector to be able to achieve its objectives. Public-PrivatePartnerships (PPP) will continue to receive prominence by this Administration. In this regard,the Infrastructure Concession Regulatory Commission (ICRC) will be further strengthened toensure the effective delivery of its mandate. The Government will intensify effort to addressthe security challenges which affect investments, and also deal with the issues of multipletaxation, high cost of doing business and inadequate power supply, among others.President Goodluck Jonathan Chairing a session on investors’ forum during the 17thNigerian Economic Summit
  • 248. 24824816.2 Role of International Development Partners in the Transformation AgendaInternational development partners play a crucial role in the economic development ofcountries by complementing domestic efforts. They participate in the development ofnational strategic plans and collaborate with civil society organizations to provide additionalavenues to influence local and community programmes development. The internationaldevelopment partners have been supportive in the area of providing the needed financial andtechnical assistance to enable the government achieve its set goals and objectives of theTransformation Agenda. Notable among the partners are: The UN System, European Union,World Bank, IMF, African Development Bank, Japan International Cooperation Agency,German International Cooperation, UK Department for International Development, CanadianInternational Development Agency and the United States Agency for internationalDevelopment.A review of the activities of IDPs indicated that aggregate disbursement of developmentassistance to Nigeria during the period 2010 and 2011 stood at USD2.76 billion representing anannual average of 0.59 percent of GDP and 12.6 percent of the Federal Government budget.This also represents a disbursement rate of 50.09 percent. The social sector accounted for82.02 percent, while the real/productive and physical infrastructure sectors accounted for4.57 percent and 1.43 percent respectively. Most of the interventions were channeled to theHuman Capital Development and Governance sectors.The international development partners have increasingly recognized the critical importanceof the private sector in developing the economy, which has led to the increase in the flow ofcredit to the private sector from IDPs. The bilateral economic cooperation with othercountries has brought about immense benefits to Nigeria through differentprogrammes/projects implemented in different locations in the country. The country is alsoengaging in Joint/Bi-National Commissions with many other countries.Hon. Minister NPC Dr. Shamsuddeen Usman Signing the UNcorruption fund with EN country Director for NigeriaHon. Minister NPC Dr. Shamsuddeen Usman Signing theTrans Euro Gas pipeline with EU
  • 249. 249249Other critical roles of government in providing an enabling environment for the IDPs are:i. Inaugurating the Government-Partners consultative forum under the coordination ofthe National Planning Commission. The forum meets bi-annually to discuss issues ofmutual interest with respect to development assistance to the countryii. Review of Official Development Assistance Policy to take account of the identifiedgaps in the implementation of ODA programmes. This is consistent with the ParisDeclaration, Accra Plan of Action and Bussan Declarationiii. Develop a Development Assistance Database (DAD) to effectively coordinate andmonitor the activities of the partnersTo enhance coordination with the work of the development partners, the Administration willfurther strengthen the development assistance coordination process and sustain theimplementation of Development Assistance Database (DAD). The Government will alsoencourage the partners to align their assistance programme frameworks with Nigeria’smedium and long-term development agenda.
  • 250. 250250CHAPTER SEVENTEEN: OUTLOOK AND PROSPECTS OF THE NATIONThe nation’s economic outlook and prospects in the medium term remain very bright andpositive, despite continued uncertainty and sluggish global economic recovery. The trends inmost macroeconomic variables show that the economy is on the right path to sustainedgrowth and transformation. Deepened reforms in various sectors of the economy, strongdomestic demand, increased domestic and foreign private investment, continued fiscalconsolidation, and innovative sectoral and activity-specific government interventions andreforms are expected to support economic growth and prosperity in the next two years.Conversely, a weak external environment, insecurity resulting from the continued threat ofterrorism, and negative effects of climate change are some of the events that could pose athreat to the good outlook and prospects of the economy and could act as a drag on growthand prosperity. Therefore, there are upside and downside risks whose interactions woulddetermine near term developments in the economy.The Government’s continued implementation of the diverse reforms in the economy isexpected to further sustain the economic growth momentum, diversify the economy andstrengthen the non-oil sector’s contribution to economic growth. In particular, the ongoingreforms in the power, petroleum, financial and banking, and other sectors and activities thatare at very advanced stages, would further relax the constraints on the private sector toenable it play its leading role in job and wealth creation and poverty reduction. For example,the power sector reforms have begun to show visible results in the form of improved powergeneration and access for both industrial and domestic uses. This promises to reduce the costof doing business, thereby improving the international competitiveness of the economy.The unemployment situation is expected to improve in the medium term, resulting from theimplementation of the several sector-specific initiatives aimed at further boosting real sectoractivities. One of the most prominent of these is the ATA, with high potential for job creationthrough commercial agriculture and the development of value chains in rice, sugar, cassava,wheat and cocoa. Also pertinent to job creation is the Commercial Agriculture Credit Scheme(CACS) and Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL),with the latter focusing on providing a risk sharing mechanism in support of agriculturallending. Other among government initiatives in the areas of agriculture, manufacturing andpower infrastructure are expected to further unleash the potentials of the economy to createadditional jobs to meet the demands of the economy.The prospects for increased labour-intensive manufacturing are bright and would complementthe agricultural sector in job creation. This stems from the size of Nigeria’s ready market thatremains attractive, given the increased number of the middle class, coupled with theincentive structure provided by the NIPC, the Textile Intervention Fund, the Local ContentDevelopment Policy, buy made-in-Nigeria campaign, banking sector revival through AMCONand several other initiatives. In addition, a number of tax and import duty waivers, importsubstitution measures, intervention funds for SMEs will continue to have a positive impact onlabour-intensive economic activities. As these activities gain momentum, the economy is
  • 251. 251251expected to witness phenomenal evolution that would transform the lives of rural dwellersthrough improved job creation and wealth generation.The Government’s commitment to continue direct spending on priority infrastructuredevelopment projects would further improve the current state of infrastructure in themedium term. Dogged implementation of the power roadmap and rehabilitation and upgradeof existing power plants are expected to result in improved power generation. Also,significant government investment in transmission infrastructure is expected to boosttransmission and enhance distribution efficiency. The commitment to developing anintermodal transport system would further improve transport infrastructure.Additional infrastructure development initiatives that include the Gas Master Plan (GMP),National Transport Master Plan (NTMP), Rail Master Plan (RMP), Energy Master Plan (EMP) andNational Integrated Infrastructure Master Plan (NIIMP) would consolidate the gains made sofar and further increase infrastructure development opportunities.The recent performance of Nigeria as the best foreign investment destination in Africa holdshigh promise for the country as a global investment choice, which is expected to continue inthe medium-term. In addition, the good performance of the country’s Eurobond and the highglobal appetite for it is a demonstration of the confidence foreign investors have in theNigerian investment opportunities. As the reforms in the power, petroleum and other sectorsdeepen, more foreign investment is expected to be attracted to these and other promisingsectors of the economy.The restored confidence in the capital market through government interventions and theresultant good performance of the market are expected to be consolidated to further attractprivate foreign investors as evident in the country’s improved sovereign credit rating. Therecently proposed amnesty for the Boko Haram insurgency and the declaration of a State ofEmergency in Borno, Yobe and Adamawa States are expected to drastically improve thesecurity situation. Moreover, the CBN policy on foreign exchange rate management that hassignificantly stabilized the exchange rate would further dampen exchange rate risk andincrease foreign investment inflows.However, the delay and uncertainty surrounding the passage of the Petroleum Industry Bill(PIB) could serve as a major clog in the country’s ability to attract foreign investment in themedium-term. This is especially so because investors may be postponing their decision tocommit financial resources until they are certain about the new mode of engagements in thesector. Another major downside risk to foreign investment attraction is the lingering state ofinsecurity and acts of terrorism in some Northern parts of the country.The country’s fiscal position and recognition as a role model in building buffers to guardagainst financial vulnerabilities and withstand economic shock are expected to continue inthe medium-term. The take-off of the Sovereign Wealth Fund in 2013, continued build-up ofthe country’s foreign reserves that is enough to cover almost one year of imports, adherenceto the Fiscal Responsibility Act 2007, continued restructuring of expenditures in favour of
  • 252. 252252capital expenditures, and several other fiscal consolidation initiatives would further stabilizeand improve Nigeria’s fiscal position.On the downside, the high oil prices witnessed in recent years may be threatened by possibleprolonged weak recovery in the global economy, especially in the Euro Zone that could leadto reduced demand for, and fall in the price of oil. The discovery of shale oil and highinvestment in alternative energy in the USA and other developed countries could furtherreduce demand for crude oil. This could induce significant fall in foreign exchange earnings,external reserves and fiscal revenues.The current single digit inflation rate is expected to be sustained. Maintenance of governmentcommitment to addressing the structural factors causing inflationary pressure is expected tohave positive effects on reducing inflation and inflation expectations. For example, theimplementation of the ATA is expected to improve the country’s food security position andaddress the most important driver of inflation – food prices. The outlook for keymacroeconomic variables in the medium term is set out in Table 17.1 belowTable 17.1: Outlook of the Key Macroeconomic Variables up to 2015ACTIVITY SECTOR 2012 2013 2014 2015Overall GDP Growth (revised) (percent)6.58 7.2 7.84 7.63Change in Deflator ( percent) 1.69 2.08 1.89 1.98Real GDP (N billion) 888.89 952.89 1,027.60 1,106.01Nominal GDP (N billion) 40,544.10 44,367.3148,747.60 53,507.20Inflation Rate (Annual Averagepercent)12.2 9.44 9.35 10.6Gross Investment (N Billion) 3,138.95 3,385.42 3,797.93 4,264.49Private investment (N Billion 2,092.64 2,659.97 2,984.09 3,350.67Federal Government Investment (NBillion)1,339.99 1,780.73 1,997.71 2,243.12State and Local Governments (NBillion)1,487.86 1,604.69 1,800.22 2,021.37Federal Government Revenue (NBillion)3,561.02 4,812.10 5,256.17 5,770.06
  • 253. 253253The public debt outlook presents at a low risk of debt distress and is expected to be stableand sustainable over the medium term. The continued implementation of the fiscalconsolidation objective of the TA is expected to further reduce domestic borrowing, therebyallowing the private sector better access to domestic financial market financing. The mediumterm Debt Management Strategy recently approved by the Federal Executive Council is aimedat restructuring Nigeria’s debt reducing the cost of borrowing and giving greater access todomestic and other funding sources to the private productive sector of the economy.The revival of the financial and banking sector through the AMCON intervention and othercapital market initiatives have served as major stabilizers of the sector and are expected tofurther continue playing this role. The banks are now healthier, with improved balance sheetsand increased lending to the private sector and, productive sectors of the economy. Theimproved financial intermediation resulting from this would further improve domesticfinancial resource mobilization for long-term investment. It would also further improve thehealth of the financial sector.A downside risk to a vibrant banking and financial sector and its ability to play its role indomestic resource mobilization is increase in the lending rates, as a response to the monetaryauthority’s tightening of monetary policy aimed at containing inflationary pressures.The outlook for the business environment is very promising and will continue in the nearterm. The various infrastructure development initiatives would significantly reduce the costof doing business and further facilitate foreign investment and general business operations.The government is currently engaging in an assessment and review of the Nigerian regulatoryframework, with a view to streamlining the functions of the regulatory agencies andrealigning their functions. This would help evolve improved strategy, framework and policyfor better regulation that ensures adequate protection of public interests, without stiflinginvestment and growth in all socio-economic activities.The effort of the government in addressing the problem of multiple taxation hold highpromise for an improved business environment, in the near and long term. Thecompetitiveness of the economy would continue to improve in the medium term as the worksof the Competitiveness Council progresses. The benefits of these efforts are being felt andbecoming more obvious, with Nigeria being ranked among the 50 economies narrowing thedistance to the frontier the most, since 2005. This implies that the country is not very farfrom the best performance achieved by any economy on each Doing Business Indicators, since2005. It is therefore necessary to intensify the implementation of the doing business reformsin the medium to long term.The cordial relationship between the Executive and the Legislature, on the one hand, and theExecutive and the State Governments, on the other is expected to be maintained over themedium term. The maintenance and strengthening of the various fora for interaction betweenthe Executive and these two important stakeholders in the polity would further create a
  • 254. 254254conducive atmosphere for peace and progress. The downside risk to this outlook is a possibleheat up in the political space, as the tempo of political activities in anticipation of the 2015elections is expected to rise in 2014. In spite of this risk, however, the JonathanAdministration will continue to focus on the key goal of advancing the growth anddevelopment of the country.The outlook for the state of security in the country is promising and is expected to continueto improve. As the Committee established to address the security challenges in the northernpart of the country progresses in its work, it is expected that the challenges of insecurity andacts of terrorism characterizing parts of the area would drastically reduce. The recentdeclaration of a State of Emergency in Borno, Yobe and Adamawa States is also expected tohave a dowsing effect on the security challenges in the particular States and the North as awhole. In addition the recent acquisition of state of the art equipment for security agenciesand promise to deliver same to all States of the Federation would contribute in no smallmeasure to addressing the security challenges in the country. Further efforts being made toconsolidate the gains from the Niger Delta Amnesty Programme would reinforce theseinitiatives to improve national security.The passage of the PIB in the foreseeable future would serve as a boost to the oil and gassector and holds high promise for a positive outlook in the sector. This would encourageforeign investment, local participation and improve returns to the country from its oilresources. On the contrary, the delayed passage of the PIB would continue to cast a shadowover the sector, aggravating the state of uncertainty in oil and gas-related activities.Overall, the trend in most important macroeconomic variables demonstrates that theeconomy is on the right path. Furthermore, the sustained implementation of the variousreform initiatives would consolidate the gains made over the past two years and will positionthe country on the path to achieving the set targets over the remaining life of thisadministration. The current Administration is aware of all the challenges and wouldappropriately mitigate them through relevant policy interventions.
  • 255. 255255CHAPTER EIGHTEEN: CONCLUSIONThis Mid-Term Review Report is an appraisal of the performance of the Goodluck JonathanAdministration for the purpose of apprising Nigerians on the progress made so far towardsimproving the economy and achieving the targets set out in the Transformation Agenda, 2011-2015. The resolve of the Administration has remained, to maintain macroeconomic stability,ensure economic growth, create jobs and keep a safe and secure environment for thecitizens.The policy interventions contained in the TA are geared towards addressing some of the keychallenges facing the economy. Notable among which are high level of growth that is non-inclusive, high rates of unemployment and poverty, widening disparity in incomes, depletingforeign reserves, rising recurrent expenditure and overall fiscal deficit.Through the macroeconomic and sector-specific reform efforts, remarkable achievementswere recorded in the areas of improved macroeconomic conditions, with the nominal GDPrising from $226.13 billion in 2010 to $243.99 billion and $257.42 billion in 2011 and 2012,respectively. Also, an average real GDP growth rate of 7.33 percent was achieved during theperiod under review. This has improved Nigeria’s global GDP ranking from the 44th position in2010 to 36th in 2012.A comparison of the sectoral growth rates to their respective targets in the TransformationAgenda shows that eight out of the fourteen broad sectors namely, solid minerals, buildingand construction, real estate, financial institutions and insurance, transport, publicadministration, education and other services, exceeded their targets. All other sectorsincluding the three key growth drivers of agriculture, wholesale and retail trade, andtelecommunications had real GDP growth rates below the targets under the TransformationAgenda.In the area of fiscal operations, remarkable progress was made, especially through therationalization of recurrent expenditure as embedded in sweeping reforms in the publicsector. This has led to a sustained reduction in the budget deficit to GDP ratio from 3.25percent in 2010 to 3.14 percent and 2.81 percent in 2011 and 2012 respectively.Within the past two years, the government’s deep resolve to work for the interest of thenation above political or individualistic interests culminated in the ambience and cordialityexisting among the three arms of government. In particular, the improved interactionbetween the executive and the legislature has reduced unnecessary frictions, distractions andimpasse, thus eliminating avoidable delays in the business of governance. This has led toamong others, the speedy passage of the budget and other matters of national interest. TheGovernment will work towards sustaining this effort. The commitment to national duty hasalso ensured a harmonious working relationship between the States and the FederalGovernment.The trend in most important macroeconomic variables demonstrates that the economy is onthe right path. Moreover, sustained implementation of the various reform initiatives would
  • 256. 256256further consolidate the gains made over the past two years and position the country on thepath to achieving the set targets of the Transformation Agenda, over the remaining life of thisAdministration. The Administration is aware of the challenges of insecurity, unemployment,inadequate infrastructure, and would appropriately mitigate them through appropriate policyinterventions. The Government will take full advantage of the existing opportunities to ensurethe objectives of the TA are vigorously pursued in order to achieve the stated targets and,possibly, exceed expectations.As we move into the second half of the Administration, our government will intensify effortsat building a stronger and stable economy that will promote enduring growth and prosperity.The gains already recorded at the macro and sectoral levels will be improved upon. TheAdministration will continue to place national interest over and above any other sectional orpersonal interest. The Government will further strengthen efforts aimed at keeping ourborders secure, as well as upscale the measures put in place to foster peace and publicsecurity, the necessary ingredients for growth and development.The Administration’s mission remains to continuously focus, prioritize and strategize, in orderto make more positive impact on the quality of life of all Nigerians. The Government, whileremaining focused on the big picture will, where the need arises, seamlessly review thenational strategies towards achieving the targets of the Transformation Agenda.